Vietnam targets 7 pct GDP growth over next five years

By Nguyen Quy   April 14, 2020 | 04:17 pm PT
Vietnam targets 7 pct GDP growth over next five years
A man works at an assembly line of Vinfast Auto factory in Hai Phong City, northern Vietnam, June 14, 2019. Photo by Reuters/Kham.
The government has set an annual growth target of 7 percent from 2021-2025 to make up for the Covid-19 induced slowdown.

A recent statement said the government will continue to improve the business environment and infrastructure, expand export markets, apply advanced technologies and promote private sector development over the next five years.

It noted that the global economic situation continues to be complicated and unpredictable, while the domestic economy faced many difficulties and potential risks, posing many challenges for sustainable development. The Covid-19 pandemic has exacerbated the situation.

Therefore, the target set out for the period of 2021-2025 "was a challenging task," the government said.

Vietnam’s Q1 GDP growth of 3.82 percent was the lowest since 2010, with the coronavirus outbreak crippling key industries like tourism, hospitality and aviation. 

The government recently passed a VND62 trillion ($2.6 billion) financial support package for poor people and businesses affected by the Covid-19 pandemic and cut electricity prices. The central bank has also cut its policy rates to prop up economic activities.

Vietnam’s annual GDP growth exceeded 6.8 percent from 2017-2019, and was among the fastest growing economies in Southeast Asia.

Last year, economic expansion was 7.02 percent, the second highest in the last decade after a record 7.08 percent in 2018.

The nation has confirmed 267 cases so far with 98 still under treatment and others discharged or awaiting their release from hospitals.

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