HANOI: Following the gloomy picture of Vietnam’s economy in the second quarter of the year, when economic growth hit just 0.39 percent, the third quarter was a much rosier, with growth reaching 2.62 percent.
While challenges remain in manufacturing, retail gradually improved in the quarter, investment from State-owned enterprises increased significantly, the trade surplus stood at 10.7 billion USD, and inflation was kept under control, report agencies.According to experts, the economic prospects for 2020 will be largely determined by the circumstances surrounding COVID-19 not only in Vietnam but globally, together with the implementation of the EU-Vietnam Free Trade Agreement (EVFTA) and the disbursement of public investment.
The country has introduced preferential policies for foreign investors in order to take advantage of the global trend towards shifting investment flows. That, along with stable macroeconomic conditions, has created significant momentum for economic growth in 2021 and subsequent years.
The Vietnam Institute for Economic and Policy Research announced two growth scenarios for this year. The brighter one forecasts growth of 2.6 to 2.8 percent, while the other forecasts 1.8 to 2 percent.