Vietnam's economy to grow 6.8 pct in 2021: World Bank

Xinhua, December 22, 2020

Vietnam's gross domestic product (GDP) is expected to grow by almost 3 percent in 2020 and about 6.8 percent in 2021, thanks to the country's management of the COVID-19 pandemic, according to a report released by the World Bank on Monday.

The bi-annual economic report predicts that Vietnam will achieve positive growth this year while the global economy is expected to contract at least 4 percent.

The report attributes Vietnam's economic performance to the resilience of both its domestic economy and the external sector.

Besides the containment of the pandemic by bold, early and innovative measures, the Vietnamese government has also used its fiscal and monetary policies to provide breathing space for the private sector and jump-start the recovery.

Besides, the external sector, the main driver of economic growth in Vietnam over the past decade, has performed exceptionally well since the beginning of the COVID-19 crisis, according to the bank.

Notably, the country is on the verge of reporting not only its highest merchandise trade surplus ever but also an increase in international reserves. The report suggests that foreign investors have continued investing or shifting production activities to Vietnam due to the country's good management of the pandemic.

Looking ahead, Vietnam's prospects appear positive as the economy is projected to grow by about 6.8 percent in 2021 and, thereafter, stabilize at around 6.5 percent, said the bank. This projection assumes that the COVID-19 crisis will be brought gradually under control, notably through the introduction of an effective vaccine.

Earlier in November, the International Monetary Fund revised upward its forecast for Vietnam's 2020 GDP growth by 0.8 percentage points to 2.4, among the highest in the world.

The country posted an economic growth rate of 2.12 percent in the first nine months of this year, the lowest rate in the past decade, according to its General Statistics Office.

Under a recently-adopted plan by the country's top legislature, Vietnam will strive to achieve a GDP growth of around 6 percent in 2021 while effectively combating the COVID-19 pandemic.