inflation rate

The COVID-19 pandemic will continue to weigh on socio-economic development and State budget in 2021 and the years that follow, Minister of Finance Dinh Tien Dung said.

The Ministry of Planning and Investment has proposed adding some indexes not yet stated in the statutory economic criteria, such as per capita gross domestic product (GDP), contribution of TFP to growth and labor productivity.

Salaries increased by 6.5% this year at multinational companies (MNCs) and 5.2% at Vietnamese companies, and are forecast to increase by 7 per cent and 7.7% next year, according to the Talentnet – Mercer Total Remuneration Survey.

If the Covid-19 pandemic will continue to be well put under control as it is now, Vietnam’s GDP growth in the fourth quarter is likely to be higher than the first three quarters.

Vietnam’s GDP grew by 2.12 percent in the first nine months of the year compared with the same period last year, the lowest growth rate since 2011, according to the General Statistics Offic.

The Ministry of Planning and Investment (MPI) has been asked to meet the goal of 6-6.5% GDP growth in 2021.

Truong Van Phuoc, a respected economist, is optimistic about Vietnam’s growth, though some analysts warned about a negative growth rate after the new Covid-19 outbreak was discovered in Da Nang.

Under pressure from investors, annual business plans are rarely changed at large enterprises. But things may be different this year.

As some business fields are stagnant and the government’s shock relief plans need more time to bring benefits, the picture of the national economy is expected to be darker in Q2 than in Q1.

Keeping the inflation rate at 4 percent in 2020 will be a challenging task, not only because of the pork price escalation, but also money excess.

Vietnam has made solid efforts to be more enabling and responsive to businesses that form a firm pillar for strong economic growth. 

Many problems arose in the last months of 2019, which sparked the worry that 2020 would be a tough year for Vietnam’s economy.

The average inflation rate in 2019 was low at 2.79 percent. However, the inflation rate in December 2019 reached 5.23 percent compared with December 2018, and this is worrying.

Associate Professor Dinh Trong Thinh of Academy of Finance talks about the important role of the private sector in the national economy.

Vietnam’s exports still heavily relied on foreign invested enterprises (FIEs), while foreign direct investment (FDI) did not have positive influences to the other economic sectors of the economy.

“We think that in 2020-2022, Vietnam may face negative impact from the trade war instead of short-term positive impact, ” said Tran Toan Thang from the Centre for Socio-Economic Information and Forecast (NCIF).

Vietnam could drop out of the Top 20 economies of global growth. Is this because Vietnam is going more slowly or the world is going faster?