The fourth wave of Covid-19 caused many localities to implement prolonged social distancing, stalled production, broken supply chains, decreased key economic indicators, and reduced purchasing power, people’s lives decreased sharply, life was seriously affected, unemployment rate increased. However, by the last months of 2021, with the rapid vaccination campaign and high vaccine coverage rate[1], Viet Nam’s economy has had a positive recovery. Gross domestic product (GDP) in the fourth quarter of 2021 increased by 5.22% over the same period last year, bringing Viet Nam’s GDP growth rate in 2021 to 2.58%. Many localities, despite being affected by the Covid-19 epidemic, have made great efforts to overcome difficulties, boost production and business, maintain economic development and ensure social security. The whole country has 54 localities with higher GRDP growth than the previous year and 9 localities have negative growth.
Among the five cities directly under the Central Government, Hai Phong has the leading growth rate of gross domestic product (GRDP) in the country in 2021, reaching 12.38% and is one of two provinces and cities with double-digit growth[2]. Despite having a higher growth rate than the whole country, Ha Noi’s GRDP only increased by 2.92%, ranking 40th out of 63 provinces. Da Nang maintained positive growth but with a slight increase of 0.18%. GRDP growth of Can Tho decreased by 2.79% and Ho Chi Minh city decreased by 6.78%, is the locality with the lowest growth rate of GRDP in the country.
GDP and GRDP growth rates of 5 cities under the Central Government in 2021
Ha Noi’s GRDP in 2021 is estimated to increase by 2.92% compared to 2020, lower than the growth rate of 4.18% in 2020. Industry and construction sector is estimated to increase by 3.85%, contributing 0.87 percentage points to the GRDP increase. The processing and manufacturing industry continues to play an important role in industrial growth in the city, although production is also heavily affected by the Covid-19 pandemic, especially the manufacturing and exporting industries and the industry uses a lot of imported raw materials, materials and accessories. The agriculture, forestry and fishing sector increased by 3.46%, contributing 0.07 percentage points. The service sector increased by 2.71%, contributed 1.72 percentage points, which is the lowest increase in recent years due to industries and fields such as: Tourism, hotels, restaurants, transportation, export imports, and entertainment… were heavily affected by the Covid-19 pandemic. products taxes less subsidies on products is estimated to increase by 2.19%, contributing 0.25 percentage points to the overall increase.
Although leading the country in GRDP growth, the economy of Hai Phong city is also greatly affected by the Covid-19 pandemic, many indicators are lower than the plan. In the growth rate of 12.38% of the whole economy, the agriculture, forestry and fishing sector increased by 1.49%, contributing 0.06 percentage points; the industry – construction sector increased by 19.04%, contributed 9.85 percentage points; the service sector increased by 5.13%, contributing 1.96 percentage points; products taxes less subsidies on products increased by 8.21%, contributing 0.51 percentage points to the overall increase. The processing and manufacturing industry continued to affirm as a bright spot and a driving force for economic growth of Hai Phong with an increase of 22.46%, contributing 9.35 percentage points to the overall increase. Key industries such as automatic equipment manufacturing, phone and component manufacturing, electric motorcycle manufacturing, automobile manufacturing, and civil electronic product manufacturing maintain high growth rates in 2021.
The Covid-19 epidemic has seriously affected the tourism sector, one of the key economic sectors of Da Nang. Besides, agricultural, industrial and construction production also faced many difficulties, especially in the third quarter of 2021, when the epidemic broke out strongly in the locality. Of the 0.18% increase of the whole economy of Da Nang city, only the service sector increased by 1.24%, contributing 0.83 percentage points to the overall growth rate; the agriculture, forestry and fishing sector decreased by 2.38%, reducing by 0.05 percentage points; the industry and construction sector decreased by 2.13%, reducing 0.45 percentage points; products taxes less subsidies on products decreased by 1.44%, reducing 0.15 percentage points.
Can Tho’s GRDP growth in 2021 decreased by 2.79% over the previous year, of which the agriculture, forestry and fishery sector increased by 1.12%, contributing 0.13 percentage points to the overall increase; service sector increased by 0.79%, contributed 0.40 percentage points; the industry and construction sector dropped sharply by 10.70%, reducing 3.31 percentage points; products taxes less subsidies on products decreased by 0.16%, reducing 0.01 percentage points.
Ho Chi Minh City’s socio-economy in 2021 suffered a serious decline due to the Covid-19 pandemic, the lowest GRDP growth in the country with a decrease of 6.78% over the previous year, of which the third quarter decreased by more than 24% compared to the same period last year. The service sector (accounting for 64.3% of the city’s GRDP), down 5.5% over the previous year, reducing 3.41 percentage points in the overall growth rate of the city’s economy; the industry and construction sector decreased by 12.96%, decreasing by 3.24 percentage points; the agriculture, forestry and fishing sector decreased by 13.68%, reducing by 0.07 percentage points; products taxes less subsidies on products decreased by 0.43%, reducing 0.05 percentage points.
In 2021, in the face of unprecedented difficulties and new challenges, our Party and State have given timely instructions to develop the economy, restore production and business, and realize the dual goal of “repelling the epidemic and economic development”, safe adaptation, flexibility, effective disease control. This is an important basis for the Vietnamese economy to recover in the new normal in 2022.
[1]As of December 27, 2021, for the population aged 18 years and over, coverage of at least 1 dose of vaccine is 98.8% and coverage of 2 doses is 88.5%. For the population 12-17 years of age, coverage of at least 1 dose of vaccine is 81% and coverage of 2 doses is 43.5%.
[2] The 2nd place is Quang Ninh with the growth rate of GRDP in 2021 reaching 10.28%.