Vietnam has also been recognised as a bright spot in pandemic prevention and control, a united and resilient nation, as well as a reliable investment destination for investors.
The economy continues to expand
Despite unpredictable developments of the pandemic in June, especially in the southern provinces, the effective pandemic prevention and control has created a solid and stable basis for strong socio-economic development.
The economic growth rates of the country’s two largest economic cities, Ho Chi Minh City and Hanoi, reached over 5% in the first six months of this year, higher than the same period in 2020. Several localities also maintained high economic growth rates compared to the national average and other provinces and cities. Notably, Hai Phong posted an economic growth rate of 13.52% and Quang Ninh reported an economic growth rate of 8.02%.
Moreover, industrial production index, State budget revenue, and export turnover all increased over the same period in 2020.
Despite experiencing many difficulties due to the pandemic, Bac Ninh Province's gross regional domestic product (GRDP) in the first six months of this year expanded by 7.45% over the same period last year, while the index of industrial production (IIP) rose by 11.8% and the GRDP of the industrial sector soared by 9.84%.
In addition to pandemic control, localities continue to promote the disbursement of investment capital. Hai Phong launched a number of major transport and urban projects, contributing to raising the city’s position and paving the way for the development of other areas including the building of a 6.2km coastal road in Do Son District, the expansion of 5.3km provincial road No.363, and the upgrade of 13km of national highway No.10 in Thuy Nguyen District, among others.
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At the ceremony to start the upgrade of provincial road No.363 worth nearly VND600 billion. (Photo: Quang Dung)
Meanwhile, Hanoi is speeding up the construction of elevated belt roads No.2 and 3, the two main traffic routes of the capital city. The contractor is urgently completed the last items of the elevated belt road No.3 from Mai Dich to Nam Thang Long to put into operation in mid-July this year.
Quang Ninh Province is also concentrating resources on completing the Van Don – Mong Cai Expressway, the Ha Long – Cam Pha costal road, and the Cua Luc 1 and 3 bridges, among others.
After the COVID-19 crisis on a global scale, the wave of foreign direct investment (FDI) has continued to pour in Vietnam. Hai Phong has attracted over US$1.4 billion worth of FDI in the first six months of this year, tripling over the same period last year.
The city is currently focusing on implementing procedures to establish nine new industrial parks with a total area of more than 3,500ha to welcome investors.
Hanoi also attracted more than US$694 million in FDI in the first half of this year, including 171 new projects with total capital of US$96.05 million and 78 projects with supplemented capital of US$447.7 million, and US$120.5 million in capital contribution and share purchases by foreign investors. In addition, 13,125 enterprises were established while 5,687 enterprises resumed operations in the first half of this year, up 74% over the same period in 2020.
Implementing proactive and flexible solutions to realise dual goals
According to the Ministry of Planning and Investment, in the first six months of 2021, the macro-economy and major balances of the economy continued to be maintained stably with inflation under control, stable money and foreign exchange markets, and positive credit structure.
The national GDP reached nearly VND4 quadrillion while the GDP growth rate was estimated at 5.8%, 0.42 percentage points lower than the set target.
In the first half of this year, State budget revenue reached 55.5% of the yearly estimate, up 10% over the same period in 2020 while disbursement of public investment reached 34.15% of the plan. Agriculture, forestry and fishery production was estimated to expand by 3% while industrial production - construction increased by 7.85%. The results demonstrate the right direction of the Government in persistently pursuing the dual goals.
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With good pandemic prevention and control, activities have returned to a new normal in Hai Phong (Photo: Ngo Quang Dung).
However, there remained inadequacies in the first six months of this year including the GDP being lower than expected, the dependence of import and export in several markets, the trade deficit, the congestion of import and export goods, and others.
Notably, the disbursement of public investment capital remained slow. Disbursed investment capital from the central budget in the first five months of 2021 only reached 22.12% of the plan, lower than the same period last year (25.98%).
The new strain of COVID-19 virus with unpredictable developments may cause difficulties to production and business activities due to the impact of epidemic prevention and control measures. However, the sooner the pandemic is controlled, the faster the economy will recover and develop.
The epidemic prevention and economic development must take the people as the centre, while the political system at the grassroots plays as the foundation for pandemic prevention. The whole political system needs to make greater efforts with strong determination.
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Belt road No.2 in Hanoi (Photo: Dang Anh).
The pandemic has seriously affected the economic and social development of the country. But in difficulties, the bravery of the country's political system is affirmed, consolidating the people’s belief in the leadership of the Party committees, authorities and political system at all levels.
Lessons learned from pandemic prevention and control, such as self-reliance, creative application of policies, close coordination between front line forces, the mobilisation of national strength and solidarity, the mutual support, and others, are valuable experiences for Vietnam to overcome difficulties and successfully fulfil tasks in the future.
