return icon

It may take one year to recover VN economy: experts

A low GDP growth rate is unavoidable in 2020 as the economy has been seriously affected by Covid-19.

Under all three economic development scenarios designed by the Vietnam Institute for Economic and Policy Research (VEPR), Vietnam would not obtain a 6.8 percent GDP growth rate as initially planned.




In fact, the low GDP growth rate for 2020 has also been predicted by domestic and international institutions. The Ministry of Planning and Investment (MPI) said at the conference between the government and provincial authorities on April 10 that the GDP growth rate this year would be lower than 6.8 percent.

Under VEPR’s most optimistic scenario, with the epidemic contained in mid-May, GDP would grow by 4.2 percent.

Under the less optimistic scenario, i.e. the epidemic ends by Q3, GDP would grow by 1.5 percent only.

Under all three economic development scenarios designed by the Vietnam Institute for Economic and Policy Research (VEPR), Vietnam would not obtain a 6.8 percent GDP growth rate as initially planned.

Meanwhile, under the worst scenario, the GDP growth rate would be minus 1 percent if the epidemic can be controlled by the second half of Q4.

According to Pham The Anh from VEPR, in all scenarios, in the post-Covid-19 period, many business fields such as aviation and tourism would have to struggle to recover and the recovery process would last until when the world completely controls the pandemic.

Anh noted that the figures about GDP growth rate do not fully reflect the real difficulties of the national economy, because they cannot count the unofficial economic sector which was more seriously hit in the previous recessions.

Nguyen Tri Hieu, a respected economist, said if the world can control the epidemic by Q2, i.e. the number of infection cases and deaths do not increase, the epidemic will be stopped short. If so, the world’s economy will recover.

If the world still cannot control the pandemic by the end of June, the national economy will face bigger difficulties.

Hieu said if Vietnam can contain the epidemic by the end of June, the economy will begin its recovery process in early Q3. The process will last a long time – from six months to one year. This means that Vietnam’s economy would only return to normal in the two last quarters of 2021.

If the epidemic cannot be contained by the end of June, Vietnam and the world would fall into a crisis.

The Government has launched economic relief packages, including a VND300 trillion credit package, a VND180 trillion package for tax and land rent payment extension, a VND11 trillion package for electricity bill reduction, and VND62 trillion for social security.

Nguyen Duc Thanh from VEPR said with the packages, the government is not pumping money directly into circulation, so high inflation will not occur. 

Thanh Lich

Digital economy expected to add 30% to GDP by 2030

Digital economy expected to add 30% to GDP by 2030

The country wants to raise the digital economy’s contribution to gross domestic product (GDP) to 20 per cent by 2025 and 30 per cent by 2030.

Economic growth slows as GDP rate threatened

Economic growth slows as GDP rate threatened

Sticky projected prospects caused by the global health crisis among  Vietnam’s key trading partners are expected to hit the domestic economy this year with the manufacturing and processing sector, one of the key growth pillars, to be hit hardest.


Colorful crabs raised as pets by animal lover

Dogs as pets, sure. Cats, absolutely. Birds and rabbits, of course. But crabs? Really? It turns out that one man in Hanoi is so crazy for crabs he has dozens upon dozens of them as pets.

Vietnamese GDP set to rank third in ASEAN by 2027

Vietnam’s gross domestic product (GDP) in ASEAN is expected to expand considerably over the next five years, with its rankings rising from sixth this year to third by 2027, according to the latest forecast made by the IMF.

Attractive sites in HCM City vandalised with graffiti

Multiple sites in HCM City, including bus stops, metro trains and the newly opened Thu Thiem 2 Bridge, have been vandalised with graffiti.

FDI poured into real estate sector doubles

Real estate sector attracted 3.5 billion USD in foreign direct investment (FDI) the first nine months of this year, accounting for mearly 19% of total FDI that the country lured in the period, coming second among sectors in terms of FDI attraction.

Gia Lai province has new Chairman

The Government has confirmed Mr. Truong Hai Long as new Chairman of the Gia Lai provincial People's Committee.

Investors dump shares in panic, VN-Index drops nearly 46 points

The VN-Index officially lost the 1,110-point mark, retreating to the bottom made in February 2021 in the first trading session of October on October 3.

First Vietnam monkeypox case returns from Dubai

The Ministry of Health confirmed on October 3 that a woman returning from Dubai has infected with the monkeypox virus, the first case recorded in Vietnam so far.

Coca-Cola injects US$136 million into Long An plant

Coca-Cola Beverages Vietnam Co., Ltd is poised to start development on a beverage factory with total investment capital exceeding US$136 million in Phu An Thanh Industrial Park of Ben Luc district in the southern province of Long An.

List of 48 websites showing signs of law violation announced

The Ministry of Information and Communications (MIC)’ Authority of Broadcasting and Electronic Information has announced a list of 48 websites showing signs of law violations as of the end of the third quarter.

Secretary of Hai Duong Provincial Party Committee expelled from Party

The Party Central Committee decided to expel Secretary of the Hai Duong Provincial Party Committee and Chairman of the provincial People’s Council Pham Xuan Thang from the Party during the first working day of its sixth plenum in Hanoi on October 3.


Hanoi seeks UNESCO's recognition for Mo Muong

Seven must-visit destinations in Vietnam for coffee connoisseur

From the 19th century until now, coffee has taken a journey to become an irreplaceable part of Vietnamese culture and life.

Petrol prices fall to over a year record low of VND21,000/litre

Petrol prices tumbled to the lowest level in more than a year in the latest adjustments made on October 3 by the Ministries of Industry and Trade and the Ministry of Finance.

Foreign ODA and concessional loans reach 15.5% of target

Disbursement of foreign official development assistance (ODA) and concessional loans has been slow, achieving only 15.48% of the target, the Ministry of Finance reported.

More foreign visitors to HCMC signals thriving tourist season

Roughly 100 French, American, German tourists traveled to Ho Chi Minh City on French Le Laperouse yacht of Ponant after the last visit in mid-November 2019 signaling a thriving tourist season.