Favorable factors and reasonable decisions have helped the economy overcome the ‘headwinds’.These include a flexible and effective monetary policy, good price management, measures to control inflation and satisfactory results in public investment disbursement.

“More than 50 percent of investment capital was disbursed in the last nine months, which was rarely seen in the last years,” he commented.

Phuong mentioned the outcomes in external relations. He cited US President Joe Biden’s visit to Vietnam and the decision by the two parties to upgrade the current regulation ship to Comprehensive Strategic Partnership.

Meanwhile, Phan Duc Hieu, Permanent Member of the Economics Commissions, cited other reasons behind the satisfactory economic growth, including the policies on supporting people and businesses (tax remission, extension of financial obligation fulfillment deadline), totaling VND150 trillion. Prime Minister Pham Minh Chinh instructed to apply a loosened monetary policy.

Hieu, when meeting the business community, found that businesses were highly aware of the need to overcome difficulties themselves rather than rely on support from the government.

Vu Minh Khuong, a lecturer of the Singaporean Lee Kuan Yew School of Public Policy, commented that observing Vietnam and finding out if the economy has become stronger after the pandemic has been an issue of concern of many international researchers. They have found that Vietnam has become stronger.

According to Khuong, trust in the government’s economic management amid the difficulties of the global economies has increased sharply, from both internal and external subjects.

“The localities and large businesses I have met are all ready to develop and cope with difficulties in the future,” he said.

The expert hailed the Prime Minister and the government in regulating rice exports which not only brought high profits to farmers and exporters, but also ensured food security in the world. 

“Vietnam is not just for itself, but for the whole world as well. What if Vietnam had also become chaotic and decided to stop exporting rice?” he said.

Regarding macroeconomic management, Khuong said Vietnam has been standing firm in the face of the global economy, reasonably managing the exchange rate and interest rate policies.

Many daring and important decisions have been made, including one on building 218 kilometers of metro and the urban railway network in 12-15 years.

Commenting that he could see a ‘special atmosphere’ at the meetings of the government and ministries, Khuong said: “I went through the first period of reform, and in this second reform, although there are countless difficulties and challenges, I can see the horizon."

Vietnam’s businesses now don’t target just short-term benefits and ‘live from hand to mouth’, but draw up long-term business strategies.

Khuong said that Vietnam is standing at the threshold of a new era in which Vietnam can become a developed country in the near future.

“US President Joe Biden’s visit to Vietnam has brought strong motivation for Vietnam’s economy to develop, and create more jobs, such as semiconductor chip manufacturing, which is a great opportunity for Vietnam,” he said, adding that “Vietnam will take impressive steps towards the future".

Going on the right track

Shantanu Chakraborty, Vietnam Country Director of the Asian Development Bank (ADB), warned that infrastructure problems remain. Therefore, it is necessary to mobilize more resources from the private sector for infrastructure development, especially to adapt to climate change.

He stressed that Vietnam needs to reshuffle to encourage the private sector.

“We highly appreciate the Government's proactive policy responses, which aim at balancing macroeconomic stability and supporting socio-economic growth, and promoting public investment. Macroeconomic policies include fiscal and monetary measures,” he said.

"The Government has been on the right track so far,” he said.

Thu Hang