Home Business GDP growth forecast robust for 2020

GDP growth forecast robust for 2020

Goods loaded at a seaport in Đà Nẵng. Efforts to keep inflation down and the forex rate in check will play a key role in boosting GDP growth in 2020, experts say. — VNA Photo

HÀ NỘI — Việt Nam would look to maintain economic growth of 6.76 per cent this year, according to the National Centre for Socio-Economic Information and Forecast under the Ministry of Planning and Investment.

How much the economy could pull ahead, however, would largely depend on the global economy, said Đặng Đức Anh, deputy director of the centre.

In a positive scenario, in which the global economy experienced growth and the country managed to hold inflation down and keep the forex rate under control combined with the implementation of sound socio-economic development policies, Việt Nam’s GDP could grow at more than 7 per cent.

In a more conservative approach, in which ongoing trade tensions, rising protectionism and natural disasters had a much greater impact than anticipated, the economy was forecast to grow at 6.76 per cent, especially if key sectors as agriculture exports and animal husbandry were hit hard.

While economic experts had not reached a consensus with their forecast for 2020, most had argued the global economy was likely to slow down.

“Flaring tensions from political and economic issues around the world is hurting the price of commodities, especially the US-China trade war. On top of that, rising trade protectionism in many markets hinders trade and damages the global value chain,” said Anh.

Việt Nam, however, is in a good position to pursue high GDP growth this year thanks to stable macroeconomics, numerous international trade deals, rising contributions from the private sector and a growing appetite in the domestic market for goods and services.

Key challenges and limitations for Việt Nam include its processing and manufacturing sector, traditionally a major driver of the economy, which is facing a limited supply of skilled workers, underwhelming growth among the country’s small-medium enterprises.

In addition, a number of key products have been negatively affected by the on-going US-China trade war, or become targets of higher tariffs in overseas markets.

Anh urged the Government to focus on providing support to key business sectors in which Việt Nam enjoys competitive advantages or those that could support other economic sectors such as tourism, information technology, software manufacturing and agriculture. Vietnamese products must also find ways to enter new markets to minimise the negative impacts of potential geo-political conflicts. — VNS

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Must Read

Da Nang tops Google’s list of trending destinations in 2020

A bird's eye view of the Golden Bridge in Da Nang, Vietnam. Photo: Tuoi Tre Da Nang, a coastal city in the central region of...

Tet Viet Festival ongoing in Ho Chi Minh City

A group of artists take a selfie on the golden apricot blossom road at the Tet Viet Festival at the Youth Culture House in...

Ho Chi Minh City to launch hop on-hop off bus service next week

An open-top double-decker bus in downtown Ho Chi Minh City. Photo: Nguyen Cong Thanh / Tuoi Tre Open-top double-decker buses will start taking visitors to...

American producers pay Vietnamese musician for song in ‘Vietnam War’ docu-series after free ride

A poster of 2017 American documentary series ‘The Vietnam War’ Producers of an American docu-series on the American war in Vietnam have agreed to pay...

Cruise ship arrivals to Vietnam pick up in 2020

Passengers disembark from the Quantum of the Seas cruise ship at Phu My Port in Ho Chi Minh City on January 14, 2020. Photo:...