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Weathering the storm, Vietnam economy remains stable among uncertainties

The building of an independent and self-reliant economy associated with extensive international integration needs to start from businesses, especially private ones, in order to increase resilience and improve internal forces.

At the fourth Vietnam Economic Forum held in HCM City recently, Yoshiki Takeuchi from the Organization for Economic Co-operation and Development (OECD) said thanks to flexible pandemic control measures, Vietnam is one of a very few countries that maintained positive growth in 2020.

Vu Thanh Tu Anh from Fulbright University commented that Vietnam is facing difficulties and challenges, but it has great opportunities as well. He stressed that Vietnam still remains stable in a world full of upheavals. The world has been facing uncertainties over the last 20 years, but Vietnam has been stable, even during the 1997-1998 and 2008-2009 crises.

By “standing firmly in the storm”, the Government has shown its capability of regulating the economy in a flexible way, staying dynamic and decisive in setting policies and taking action.

Tran Dinh Thien, a member of the Prime Minister’s Economic Advisory Group, noted that the Prime Minister visited pandemic epicenters and major economic centers. Vietnam fought the pandemic, but this did not cause disruption of the chains of the market economy. The great efforts of localities and businesses, especially private ones, also contributed to the stability of Vietnam’s economy.

HCM City Mayor Phan Van Mai noted that the city has been running economic programs to help businesses join global value chains and make products with high added value.

The shift to interdependent relations with all partners has occurred. The city’s authorities believe that in order to effectively attract foreign direct investment (FDI), it is necessary to heighten the partnership role of the domestic economic sector, especially private enterprises.

Economists note that the pandemic has once again shown the important role of the private sector. Many private corporations have been coping well with the difficulties caused by the pandemic. They have become the “leading cranes” in the economy.

Nguyen Thi Phuong Thao, CEO of Vietjet Air, said with the firm financial resources obtained after 10 years, and with the capability of making adjustments to adapt to new circumstances, Vietjet has not only overcome the pandemic but also given active support to pandemic prevention and control. The factors that helped the air carrier overcome the Covid-19 crisis were its constant efforts and self-control.

Grasping opportunities

The businesswoman said the driving force for business is national will and aspirations for a prosperous country.

She emphasized renovation, improvement of internal strength and self-reliance in seeking technological solutions. When the operating system at the HCM City Stock Exchange (HOSE) became congested, Vietjet Air together with FPT built a new technological system to replace the old one, thus maintaining the stable operation of the market. The smooth operation of the system is evidence that shows the self-reliance of Vietnamese businesses.

However, economists warned that not all difficulties disappeared after the pandemic. The Ukraine - Russia conflict, oil price increases in the world market, the risk of food shortages, the US’s financial policy tightening, the possibility of pandemic occurrence, and the Chinese zero-Covid policy are threatening the economic recovery process in developing countries. 

In such conditions, the building of an independent and self-reliant economy associated with deep global integration which shows the businesses’ capability of adapting to new conditions and overcoming difficulties.

Dr. Tran Dinh Thien proposed that the Government needs to apply necessary solutions to help businesses recover and develop in the post-pandemic period. The obstacles in mechanism, institution and business environment need to be removed immediately, so that businesses can best promote their self-reliance and creativeness. 

Regarding aviation and tourism industries, Thien believed that these are the pillars of the modern economy which is integrating into the world, which take the pioneering role in the opening. Therefore, the government needs to have reasonable support solutions for tourism and aviation businesses, under the spirit of national resurgence. 

Tung Nguyen

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