Vietnam is projected to be the fifth highest-growing economy in the world this year and the country has a unique opportunity to increase its footprint in the global economy in both trade and investment,
Stefanie Stallmeister, World Bank Acting Country Director for Vietnam, has said.
She made the remarks during the unveiling of the WB’s report "What will be the new normal for Vietnam? The economic impact of COVID-19" on July 30.
The COVID-19 pandemic is the largest economic shock for the past 35 years, posing risks in the health and economic sectors, she added. About 30 million workhands, equivalent to half of the country’s workforce, have been affected by the pandemic.
The report argued that Vietnam should not envision a return to the old normal, but rather should define what will be the new normal as the pandemic has changed in so many ways how people live, work, and communicate.
The main challenge for Vietnam will be finding new drivers of growth to consolidate the expected recovery.
“To adapt to the new normal, policymakers must find new ways to compensate for the weakening of the traditional drivers of growth while managing rising inequality,” Stallmeister said.
The WB report put forward three lines of action for Vietnam, which are to gradually reopen the country to international visitors, focus on fiscal policy, and support the rebound of hardest-hit businesses.
Stallmeister forecast that Vietnam’s GDP growth could reach 2.8 percent in 2020 and 6.7 percent in 2021./.VNA
Standard Chartered Bank expects Vietnam’s growth to slow to a multi-year low of 3 percent this year on soft external demand, with external headwinds set to offset domestic outperformance.
Vietnam could resume pre-COVID-19 growth levels by next year although the pandemic threw a spanner in the works for the country’s thriving economic growth story, McKinsey & Company said in report published on Consultancy.asia.