National Assembly aims to economic recovery plan: 2022 GDP growth of 6-6.5 per cent

November 10, 2021 | 13:12
Vietnam's National Assembly set the targets for economic recovery in 2021 and expectations for 2022, including 6-6.5 per cent GDP growth, consumer price index of 4 per cent, and a fiscal deficit of 4 per cent of GDP.
National Assembly aims to economic recovery plan: 2022 GDP growth of 6-6.5 per cent
The National Assembly is confident 2022 will be the year of the rebound. Photo:

The National Assembly convened its first round of discussion, focusing on the economic outcomes in the first 10 months of 2021 and recovery plans in 2022. In the first 10 months of 2021, the economy is expected to have bottomed out and begun to rebound in October, as evidenced by several data-driven instances. For example, the consumer price index (CPI) climbed by 1.81 per cent, the lowest rate in the past five years and is predicted to rise by 2 per cent, far below the Vietnamese government's aim of 3 per cent. Newly-registered and added foreign investment capital climbed by 15.8 per cent on-year, with disbursements totalling over $15 billion.

It is worth noting that the October trade balance recorded a large surplus of $2.35 billion, reverting the January-October trade balance to surplus territory. Concerning the budget balance, as of October 31, budgetary revenue has achieved 91 per cent of the 2021 plan (up 5.5 per cent on-year), and it is projected that 2021 budget revenue would meet or even surpass the established target, according to SSI.

The government's proposed recovery plan for 2022 envisions GDP growth of 6-6.5 per cent on-year, with CPI of roughly 4 per cent, and a fiscal deficit of 4 per cent of GDP.

A safe and effective COVID-19 preventive approach will also be a main emphasis of the plan, and immunisation is regarded as a high priority by the government.

Furthermore, the Ministry of Health (MoH) issued an update on the present level of immunisation efforts in Vietnam. As of November 7, over 90 million doses have been provided, with around 83.8 per cent of people aged 18 receiving at least one shot and at least 40 per cent completely vaccinated. As a result of the current vaccination rate, Vietnam has become one of the most immunised countries.

SSI noted that the local government intends to provide two doses to 70 per cent of the Vietnamese population by the end of the year, three months sooner than originally planned. The MoH also indicated that the country will begin the third injection among its populace at the end of this year or early in the next year.

A key goal of the 2022 economic strategy will be to restructure two poor credit institutions and at least five wasteful projects.

The strategy also calls for improved public debt management and spending restraint. Public investment is also a significant instrument for recovery in 2022, with notable infrastructure projects such as the North-South Expressway, My Thuan-Can Tho Expressway, Long Thanh International Airport, and metro lines in Hanoi and Ho Chi Minh City, among others.

By Nhat Minh

What the stars mean:

★ Poor ★ ★ Promising ★★★ Good ★★★★ Very good ★★★★★ Exceptional