Building economic recovery project for 2022-2023

MPI Minister Nguyen Chi Dung speaking at the conference

At the online conference on building the socioeconomic development and public investment plans for 2022 for the northern midland and mountainous areas and the Red River Delta this morning (September 14), MPI Minister Nguyen Chi Dung said that the ministry is drafting an economic recovery project.

"We will submit the project to the relevant authorities for approval in October," revealed Dung without any details about the project.

Earlier, at the regular governmental meeting in August, Prime Minister Pham Minh Chinh asked the MPI to build a plan for the economic resumption amid the new normal.

The MPI minister estimates the GDP of 2021 to grow by 3.5-4 per cent if Vietnam controls the pandemic well in September and resumes all the socioeconomic development in the fourth quarter.

"If it comes true, Vietnam cannot reach the growth plan for the two consecutive years and reach the general five-year development plan (2021-2025)," said Minister Dung.

According to the report of the MPI, in 2021, most northern localities have suffered under the pandemic, so numerous economic indicators will not be able to reach the plan set forth.

However, some of them could reach or even surpass the targets. Quang Ninh is aiming for a GRDP growth at 10.5 per cent, while Bac Ninh aims for 6.45 per cent, Ninh Binh 8 per cent, Nam Dinh 8.5 per cent, and Ha Nam for 9.3 per cent.

Meanwhile, the remaining localities determined not to reach the target. Hanoi forecasts to grow 4.54 per cent (much lower than the plan set forth at 7.5-8 per cent), Haiphong 12.82 per cent (lower than 13.5 per cent in plan), Hung Yen 6.32 per cent, Vinh Phuc 6.88 per cent, and Thai Binh 5.75 per cent.

Thus, the average growth of the whole northern region is estimated at 7.04 per cent in 2021.

The MPI forecasts that global economic and trade activities can resume despite containing some risks and crises related to finance, monetary, and public debts, as well as big challenges in trade, investment, and economic growth.

Thereby, the government should reach for community immunity through vaccinations for at least around 70 per cent of its population in early-2022. "That is the essential condition for Vietnam to recover the economy," said the minister.

The MPI projects a GRDP growth for the north at 7.91 per cent in 2022. The northern provinces are expected to export goods with an estimated value of $98 billion.

The MPI proposes to restructure the tourism of the area in 2022, which is one of the key elements for economic recovery after the pandemic. "All cities and provinces will have to build their resumption scenario and tourism plans for the new normal, along with organising large events like the SEA Games and utilising the strengths of free trade agreements," said Dung.