HCMC – Vietnam is expecting a dramatic economic recovery following the Covid-19 pandemic, with gross domestic product (GDP) growth forecast at 5%, below the previous projection, while inflation would be maintained at under 4% this year, according to Prime Minister Nguyen Xuan Phuc.

Speaking to the business community at a video conference today, May 9, Phuc said many international organizations have considerably lowered growth forecasts for Vietnam this year. The World Bank estimates growth of 4.9%, and the International Monetary Fund (IMF) puts it at 2.7%.

Vietnam’s GDP growth in the first quarter fell to a 10-year low of 3.82%, but this was still a fairly high growth rate among ASEAN countries. Given adverse impacts of the pandemic, the Government is adopting new policies to facilitate a quick recovery.

“The economy could be on a V-curve recovery post-pandemic,” said the PM.

To meet the target, Phuc mentioned five key factors for the recovery, namely private sector investment, foreign direct investment, exports, public investment and domestic consumption.

According to a representative of the Japan Business Association in Vietnam, the Government should continue attracting investment and strengthening the supply chain. Meanwhile, Vietnamese enterprises should take measures to tap into new markets.

PM Phuc asked enterprises at the meeting to have specific solutions to expand markets and mend disrupted supply chains. Meanwhile, ministries and agencies should cut administrative procedures and business conditions, while continuing the fight against corruption.