Vietnam Today

According to a World Bank (WB) macroeconomic update on Vietnam in December, the country saw breakthroughs in a number of economic indicators during November, such as industrial production, trade, investment, and services. The government needs to offer fiscal policy support to boost demand from the private sector and help economic recovery.

The government’s economic recovery support program, expected to be of unprecedented scale and including a fiscal policy package accounting for between 5 and 7 per cent of Vietnam’s GDP, as recommended by the Asian Development Bank (ADB), will strengthen confidence in the market and among investors, creating momentum for the economy and growth in the stock market.

Economic support packages totaling VND843.84 trillion ($36.72 billion) are expected to be submitted to the National Assembly at its extra-ordinary session at the end of the month. Analysts have said, however, that a strong breakthrough in the stock market should not be expected based on these packages.

According to a seminar discussing measures to further foster cooperation between several Vietnamese localities and the European Union (EU), held by the Ministry of Foreign Affairs on December 12, Vietnam has the potential to cooperate with the EU in many fields, including exporting and attracting investment in agricultural products, climate change adaptation, and renewable energy development. Cooperation to date, however, has fallen short of potential and needs to be promoted further.

Agriculture, forestry, and fishery exports will reach a record $43.48 billion in the first eleven months and $47 billion for the year as a whole. While global supply chains have been disrupted by Covid-19, the record export figures are partly due to Vietnam’s focus on investment in processing and active trade promotions.

Permanent Deputy Prime Minister Pham Binh Minh has approved a pilot plan to restore regular international flights from January 1 to and from destinations with a high Covid safety index. The move will also promote Vietnam’s economic recovery and tourism sector and not let the country fall behind others in the region.