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Vietnam continued to control inflation and macro stability during the COVID - 19 pandemic

Tuesday 04, 08 2020
In the context of the outbreak of COVID-19 in Vietnam, the Vietnamese government has affirmed that it will try to maintain a stable macro-economic foundation.
Vietnam continued to control inflation and macro stability during the COVID - 19 pandemic
  • The macroeconomy will be maintained stably in the coming months

Information on the socio-economic situation in July 2020, Minister, Head of Government Office, Government spokesman Mai Tien Dung said, after 99 days of not reporting COVID-19 infection in the community. In recent days, we have discovered new cases in many places, especially in the cluster of hospitals in Danang, and in some localities.

Immediately after the emergence of new cases COVID-19, under the chairing of the Prime Minister, the Government Standing Committee held 3 meetings. The Prime Minister immediately asked Da Nang City and other ministries, agencies, and localities to organize an urgent and drastic implementation of epidemic control measures in a calm, optimistic, and non-epidemic manner widespread. The spirit is "speedy, determined, devoting all resources to thoroughly handle the outbreak". Each family, village, hamlet, village is a fortress, every citizen is a soldier on the front of epidemic prevention.

To direct the zoning of drastic epidemic outbreaks but not panic, focusing only on the blockade of epidemic areas, isolation of epidemic sources. In places where there is no infection in the community but only people returning from epidemic areas, the scope of zoning shall be at a reasonable level, limiting the spread of spread. There will be a new directive on COVID-19 prevention measures in the current period. Strictly handle violations, especially violations of the Border Law, speculation, counterfeiting, illegal trading of medical supplies.

At present, "dual goals" must be implemented. In the context of the economy heavily affected by the COVID-19 pandemic, the Prime Minister has directed and organized the online briefing to urge the disbursement of public investment, ODA capital in 2020, concurrently working with a number of big provinces and cities (such as Ho Chi Minh City, Dong Nai, Tien Giang, central provinces, Central Highlands, Mekong Delta ...) in order to effectively implement the disbursement of public investment capital - unfreeze the growth motivation. The Prime Minister directed the establishment of 7 working missions led by the Prime Minister, Deputy Prime Ministers, Minister of Finance, and Minister of Planning and Investment directly to localities, ministries, and branches urge, remove difficulties and obstacles for production and business activities, accelerate the disbursement of public investment capital (including ODA capital) in ministries, agencies, and localities.

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Vietnam's macroeconomics situation after the COVID-19 pandemic

In the context of the economy heavily affected by the COVID-19 pandemic,

The Government members assessed that with the drastic, creative, flexible, and timely active guidance of the Government and the Prime Minister together with the synchronous and positive participation of the entire political system, the business community, and especially the strong support from the people of the country, Vietnam has created great strength and important results in the implementation of the "dual goal".

In the context of the COVID-19 pandemic negatively impacting all aspects of the country's socio-economic life, but thanks to outstanding efforts, the situation of socio-economic development in the first 7 months of 2020 continued to be better than the previous month. We continue to maintain a stable macroeconomic foundation; inflation is under control; Consumer price index tended to decrease (CPI in July increased by 0.4% over the previous month, the average CPI in 7 months increased by 4.07% over the same period; the average core inflation in 7 months increased by 2.74% over the same period); interest rate ground decreased; exchange rate, foreign exchange market was stable.

Generally, in 7 months, export turnover of goods was estimated at nearly  $145.8 billion, up slightly by 0.2% over the same period, of which the bright spot was that the domestic economic sector increased by 13.5%; goods import was estimated at $139.3 billion, down 2.9%; trade surplus of $6.5 billion.

Although agricultural production has been affected by natural disasters and epidemics, it has still developed stably and positively shifted structure, which is the foundation of the economy and food security. We are determined to meet the goal of exporting 7 million tons of rice by 2020. Industrial production continues to recover for 3 consecutive months but remains modest at 3.6%.

The total retail sales of goods and services in July continued to increase strongly again, up 4.3% over the same period, thanks to policies to stimulate consumption and domestic tourism. For 7 months, equal to 99.6% over the same period, of which retail sales of goods increased by 3.6%.

In particular, the volume of disbursement of public investment increased a record in July. The disbursement of the state budget capital investment plan for 7 months reached nearly 194.2 trillion VND, equaling 41.26% of the plan assigned at the beginning of the year (the same period reached 32.27%). The disbursement speed next month is higher than the previous month. FDI and private investment were quite positive, in which, newly registered FDI in 7 months increased by 14.4% and disbursed over $ 10.1 billion.

Social security and people's health care are focused, especially the implementation of the 62 trillion VND support package for people and businesses that are facing difficulties due to COVID - 19 pandemics.

  • Always ready to overcome difficulties and challenges

Minister, Chairman of the Government Office - Mai Tien Dung said that, in the coming time, the solutions and solutions, the Government members said that in the country, due to the impact of the COVID-19 pandemic, again from the end of July, difficulties and challenges in the coming time are still great, although the macroeconomy is stable but still contains many risks, crude oil price fluctuates sharply, pork price is still high; disbursement of public investment has not met the requirements, especially ODA disbursement is very low. Production and business in many sectors and fields are very difficult; the service sector is greatly affected, especially by aviation and tourism; the number of enterprises dissolved, ceased operations and the number of unemployed workers increased ...

Around the world, the COVID-19 pandemic has been unpredictable and continues to spread at high speed. Global economic and trade in the coming time is not very satisfactory, falling into recession. However, international organizations and large financial institutions have fairly optimistic assessments about Vietnam. According to the World Bank, Vietnam's economy, although seriously affected by COVID-19, will still withstand well and will be the fifth-largest growth country in the world in 2020 with an increase of 2.8% and up 6.8% in 2021. The Economist magazine identified Vietnam as a favorite "shelter" for many world investors, which is becoming an important link in the global technology supply chain.

The situation requires us to be very alert; analyze the situation to have appropriate, timely, and effective policies, not to be surprised by surprises. The Government's guiding viewpoints are: Do not back down from difficulties and challenges; challenges must be turned into opportunities and consistent with the objectives, tasks, and solutions set out in Directive 11 and Resolutions No. 01, No. 02, No. 42 and No. 84; promote creativity, joint effort, unanimous efforts to overcome difficulties. The Prime Minister requests each member of the Government, ministries, sectors, and localities to strictly grasp the motto "Discipline, integrity, action, responsibility, creativity and effectiveness. Each member of the Government and local leaders must make efforts and direct drastically and more specifically, showing their sense of responsibility to the Party, the State, and the People.

The government determined that early August was the decisive time for a large-scale outbreak. Need to put all resources to promptly handle the outbreak, especially in Da Nang. Consistently deploying tasks and solutions in preventing and fighting against epidemics and fulfilling the socio-economic development objectives set forth; At the same time, it must continue to well implement social security, environment, social order and safety, defense, security, and foreign affairs.

Regarding some specific tasks, the Government noted: focus on implementing drastic measures to prevent and control epidemics, but at the same time create favorable conditions for goods circulation during COVID-19 pandemic outbreaks; there must be no restrictions; not because of curbing the spread of epidemics, but "stopping the river, banning markets", strictly handling violations. Continuing to control inflation, stabilize the macro, create more room for operating economic policies.

The Ministers and Heads of the sector have drastically and synchronously implemented solutions, promptly removed barriers, difficulties and difficulties, cleared up the bottlenecks to accelerate the disbursement of public investment capital. Efforts should be made to strive for the 100% disbursement of public investment capital in 2020 and in the previous years, considering the promotion of disbursement of public investment capital as the central political task in 2020.

Removing difficulties for production and business, speeding up and effectively implementing solutions and directions of the Government and the Prime Minister in order to remove difficulties, boosting production and business and ensuring social security in the context of the COVID-19 pandemic outlined in Directive No. 11, Decree No. 41, Resolution No. 42 and No. 84 ...

Regarding education and training, focusing on preparing to organize high school graduation exams seriously, honestly, safely, economically, absolutely not to make mistakes, especially to have a specific plan for In localities where COVID-19 outbreaks are occurring, absolutely no transmission of this disease to schools or between students may occur.

As for information and communication, promoting the application of information technology, propaganda about disease prevention and response measures of the authorities, especially for new developments of the epidemic, and trying solidarity, raising awareness but not causing psychological confusion, fear in the community. Besides, it is necessary to continue promoting information and propaganda to encourage the implementation of socio-economic tasks …

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Vietnam’s credit growth is slowing down

Complied by Vietnam Credit

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