In the morning, September 29th, 2020, the General Statistics Office (GSO) held a press conference to announce the report on social and economic situations in the third quarter and 9 months of 2020. Ms. Nguyen Thi Huong – Director General of GSO chaired the press conference and announced some main issues about social and economic situations of Viet Nam in the third quarter and 9 months of 2020. In this regard, gross domestic product (GDP) in the third quarter of 2020 is estimated to increase by 2.62% over the same period last year, which is the lowest increase of every third quarter in the period 2011-2020. Generally, GDP in 9 months of 2020 increased by 2.12%. In the context of complicated developments in Covid-19, negatively affecting all socio-economic fields, our country’s economy continues maintaining positive growth, showing the relevance and precise in direction and management to economic recovery, disease prevention and determination, unanimity of entire political system, the Government, the Prime Minister; efforts of people and business community to effectively implement the goal of “both preventing pandemics and developing socio-economic”.
Some key socio-economic of 9 months of 2020:
– Gross domestic product (GDP): + 2,12%
– Index of industrial production (IIP): + 2,4%
– Number of newly registered enterprises: 98954 interprises
– Retail sales of good and servicess: + 0,7%
– Investment: + 4,8%
– Total export of goods: + 4,2%
– Total import of goods: -0,8%
– Trade surplus: 16,99 tỷ USD
– International visitors to Viet Nam: -70,6%
– Consumer price index: + 3,85%
– Core inflation: + 2,59%
In the context of Covid-19 pandemic that caused a great shock making the world economy and global trade endure a deep and serious recession, the socio-economic picture of Vietnam in 9 months of 2020 continued to maintain stability thanks to prompt and drastic direction of the Government and the Prime Minister and efforts of all levels, agencies, provinces, business community and people across the nation. After social distancing was eased, along with positive impacts from the Government’s policies to support businesses activities and people, socio-economic sectors are entering into a state of operation in new normal conditions, many production and business sectors got thrive. The economy in 9 months of this year achieved a growth rate of 2.12%, the lowest level in the 2011-2020 period, but in the current context, this is a fairly good growth rate compared to other countries in the region and in the world. The agriculture, forestry and fishery sector is negatively affected by climate change, drought, saltwater intrusion and pandemic but with timely responsive solutions, becoming a support of the economy during difficulties, ensuring foodstuff and food supply. Manufacturing industry though not growing highly, but continued to play as momentum of economic growth in 9 months. Domestic supply and demand were guaranteed, people’s purchase and consumption increased again. Trade balance of goods reached a high trade surplus. The disbursement progress of public investment has been markedly improved. However, Viet Nam’s economy and society will continue to face many challenges, especially our country’s economy is wide open, thus it is affected in many ways by increasingly complicated and unpredictable international economic situations. Although Covid-19 pandemic has been basically controlled in Vietnam, but too complicatedly spread in the world, leading to disrupted global supply chains, affecting trade, tourism, transport and import-export industries, shortage of production materials in enterprises, downsizing and shutting down operations. Income, labor, employment are affected, high level of unemployment and underemployment rate will affect social security. Therefore, there is a need for great efforts and unanimity of the Government, businesses and people, support and responsibility sharing among domestic entities in this difficult period. In the immediate time, it is necessary to continue to drastically implement solutions to prevent and control Covid-19 pandemic, to prevent the pandemic from spreading and to ensure the safety of health for people. Simultaneously, focus on the following main contents:
Firstly, continue offering a large enough and effective support package to remove difficulties for production and business, economic recovery, of which focus on businesses, reforming processes and procedures for enterprises can access simply, convenient and timely support policies. Supporting business community in finding import markets for raw materials, fuels, materials, spare parts, solving difficulties, maintaining business and production activities. At the same time, encouraging people to consume domestic goods and support enterprises to produce and sell products in difficult times.
Secondly, speed up the disbursement of public investment capital, strive to achieve the possibly highest disbursement rate compared to the proposed plan through solving difficulties for projects that have been in slow disbursement, especially key projects, large-scale, pervasive to make a strategic breakthrough in infrastructure, transform investment form of urgent projects for implementation within the year, improve production capacity and create the momentum for economic growth.
Thirdly, to limit negative impacts of climate change on agricultural production results, adjusting production plans, changing crop structure to suit each region, or switching production crop is necessary based on taking advantages of provinces, predicts market demand and product consumption. In particular, promptly giving out solutions to maintain markets and brand for agricultural products to sustain production activities in the context of Covid-19 pandemic which has reduced demand for domestic and abroad consumption. Encourage enterprises and pig raising households to speed up re-herding progress and scale. Supporting pangasius producing and manufacturing enterprises to promote consumption in the domestic market.
Fourthly, to stimulate investment in production sector for export to actively finding sources of goods when markets of countries reopen normally and take advantage of opportunities from the Europe-Vietnam Free Trade Agreement. It is necessary to have policies to encourage and restrict imports suitable to the situation of domestic production, supply and demand such as encouraging import of machinery and equipment to expand production, restricting imports of domestic goods and groups of goods that can be domestically produced. The Government and enterprises will study institutional solutions, human resources, procedures, technologies and business strategies to utilize and integrate with provisions of the Free Trade Agreement and the Investment protection agreement between Vietnam and EU (EVFTA and IPA).
Fifthly, flexibly and carefully managing monetary policy, interest rates and exchange rates in line with domestic and international market development, harmoniously coordinating with fiscal policies and other macro policies to control inflation, support production and business and promote economic growth. Credit growth meets demand of production and business development. Ministries, agencies and localities closely monitor the situation of prices, domestic and world markets, developments in the US-China trade war, fluctuations of the US dollar, the Renminbi and prices of other commodities to timely handle arising problems, implementing the price adjustment roadmap of goods by State managed at appropriate time, ensure the 2020 inflation target to be below 4%.
Sixthly, closely keep track the weather situation, proactively preventing natural disasters, warn floods, landslides, impacts of drought, saltwater intrusion to minimize damage to production and people’s life. Effectively implementing policies on social security, labor and employment. Well implementing unexpected assistance, ensuring people when facing risks and natural disasters to get timely support, overcome difficulties and stabilize their lives. Strengthening the work of ensuring traffic order and safety, protecting the environment, preventing fire and explosion.
At the press conference, representatives of the GSO answered questions from reporters about social and economic situation in the third quarter and 9 months of 2020, especially the impact of the Covid-19 about social and econimic sector of Viet Nam.