Vietnam PM promises economy will rebound from COVID-19 hit | Inquirer Business

Vietnam PM promises economy will rebound from COVID-19 hit

/ 02:56 PM October 20, 2021

Pham Minh Chinh

Vietnam’s Prime Minister Pham Minh Chinh attends a meeting with U.S. Vice President Kamala Harris at the Government office in Hanoi, Vietnam, August 25, 2021. REUTERS FILE PHOTO

HANOI — Vietnam’s exports are likely to rise 10.7% in 2021, with annual inflation expected below 4%, the prime minister said on Wednesday, promising lawmakers that economic revival lay ahead.

Pham Minh Chinh told the national assembly that Vietnam, consistently one of Asia’s fastest-growing economies, had been badly hit by the coronavirus, which disrupted its supply chains and hit workers in key industries.

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Vietnam’s gross domestic product (GDP) contracted 6.17% in the third quarter of 2021 from a year earlier as the containment measures hit, the sharpest quarterly decline on record.

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Chinh said he expected GDP to expand 6.0% to 6.5% next year, with the government aiming to cap inflation at 4%.

“Realizing 2022 targets is a heavy task, but we definitely will revive our economy,” he said, despite the pandemic having put macroeconomic stability at risk.

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“Inflation is facing upward risks and there have been disruptions in the supply chains … workers’ lives have been badly hit.”

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Although Vietnam had largely reined in COVID-19 until May, a fast-spreading outbreak of the Delta variant in its economic hub of Ho Chi Minh City led to wide curbs on movement and commerce, hitting key manufacturing provinces nearby.

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This month, the government said Vietnam would miss its garment exports target this year, by $5 billion in the worst case, hit by curbs and a shortage of workers.

It expected $34 billion of textile exports, shy of the targeted $39 billion, and a shortage of 35% to 37% of factory workers by year-end, it said.

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Ho Chi Minh City has suffered a mass exodus of workers since lockdowns eased last month, on worries they would get stuck again if there was another wave of infections.

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TAGS: COVID-19, economy, Health, Vietnam

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