More effort needed to fulfil economic targets

COVID-19 and geopolitical tensions in the region and the world have put Vietnam’s economy under pressure in recent times. Despite being viewed as among the world’s leading performers, Vietnam’s economic growth has now fallen behind the government’s initial plans for the 2021-2025 period.

A recent economic report from the Ministry of Planning and Investment reveals that, since the end of 2022, geopolitical headwinds coupled with global economic recession have slowed Vietnam’s economic growth. Indeed, the country’s GDP growth in the first half of 2023 was only 3.72%; putting considerable pressure on the annual target of 6.5%.

In order to reach the economic targets for 2023 and the 2021-2025 period, the Government has issued plans and policies to stimulate the economy, most notably the Programme for Recovering and Developing the Economy and Public Investment Disbursement.

If carried out properly, the public investment disbursement rate could be 95%, which would lift the growth rate to 5.8% at most.

To boost economic growth and fulfil the targets set for 2021-2025, in addition to lubricating traditional growth engines, experts said, it is necessary to quicken the country’s green transition and promote the circular economy.

According to calculations from the Ministry of Planning and Investment, even if this year’s economic growth meets the targeted 6.5%, it must be at least 7.76% in 2024 and 2025 to meet the 6.5-7% target initially set for the 2021-2025 period.

If GDP growth this year is 6%, annual growth of at least 8% will be needed in 2024 and 2025, which is a daunting task for the economy./.

By: VNA