20.10.2020, 18:27

Vietnam fails to realize 5-year economic target on Covid-19

The emergence of the Covid-19 pandemic has slowed Vietnam’s economic growth during the 2016 – 2020 period to 5.9%, lower than the 6.5 – 7% target for the five-year term, according to Prime Minister Nguyen Xuan Phuc.

Vietnam fails to realize 5-year economic target on Covid-19
 Prime Minister Nguyen Xuan Phuc at the opening session of the National Assembly. 

This comes as Vietnam’s GDP growth in 2020 is set to expand by 2 – 3%, much lower than the 6.8% target initially set for the year, stated Mr. Phuc at the opening session of the one-month National Assembly sitting on October 20.

A lower than expected GDP growth rate also leads to income per capita of US$2750 below the target of US$3200 – 3500.

Mr. Phuc noted of the nine economic objectives for the 2016 – 2020 target, only six would meet their targets.

Nevertheless, from a global perspective, Mr. Phuc said Vietnam’s economic performance in 2020 is considered a success.

Vision for 2021 – 2025

For the 2021 – 2025 period, the government’s target would be rapid and sustainable development, while the dual target of both containing the pandemic and boosting economic growth is considered a priority in 2021. In the remaining years, Vietnam aims to modernize the industrial sector and escape the low-middle income status.

Among key economic indicators for the next five years, Vietnam targets an average GDP growth rate of 6.5 – 7%. By 2025 the country’s GDP per capita is set to reach US$4700 – 5000.

Additionally, the digital economy is expected to make up 20% of GDP, and productivity growth to average over 6.5% per year.

The PM added the government would focus on speeding up the construction of major transport infrastructure projects in the next five years, including the North – South expressway, Long Thanh International Airport, and urban railway projects, among others.

Mr. Phuc expected Vietnam to soon complete construction of over 1700 kilometers of coastal road from Quang Ninh province to the southernmost province Ca Mau.