HANOI: The Vietnamese economy is likely to gradually recover from the fourth quarter of 2021 and escape the minus growth seen in the third quarter thanks to the activeness of the business community and the Government’s efforts to remove obstacles facing enterprises, held economist Nguyen Bich Lam who is former Director General of the General Statistics Office.
Talking to the Vietnam News Agency, Lam noted that the fourth resurgence of COVID-19 in several northern industrial hubs such as Bac Ninh and Bac Giang, and later in southern localities including Ho Chi Minh City, Binh Duong and Dong Nai, as well as the capital city of Hanoi in the third quarter has caused numerous difficulties to the business sector which generates 60 percent of the country’s GDP, report agencies.
Meanwhile, 80 percent of businesses involving in the survey said that they saw rises in input cost, 54.2 percent pointed to increases in material prices, 49.5 percent complained about higher logistics cost, 33 percent encountered a worker shortage, and 40.8 percent faced a lack of materials for production, he noted.
He, however, underlined that despite a reduction of 6.17 percent in GDP of Vietnam in the third quarter of this year due to COVID-19 impacts, the Asian Development Bank (ADB) and other financial institutions still remain optimistic about the Vietnamese economic prospects in the medium and long term.
Lam held that the optimism is based on the recovery of domestic demand, coupled with the strong consumption power of the nearly 100-million strong market, the country’s stable macro-economic situation and the dynamism of the economy.
Moreover, Vietnam is also a member of many large-scale multilateral and bilateral trade agreements, said the economist.
At the same time, the Government has rolled out measures to speed up the disbursement of public investment capital, thus improving the capacity of the economy and the infrastructure system.
Lam highlighted the Government and localities’ efforts to accompany the business community in difficult times.