Vietnam’s growth slides to new 30-year low
Street vendor in Hanoi, Vietnam | INQUIRER.net file photo
HANOI — Vietnam reported economic growth for 2021 of just 2.58 percent on Wednesday, beating a 30-year low set last year as the pandemic continues to take a toll.
The communist state has long been a success story among Asian economies, posting growth of seven percent in 2019.
But shutdowns caused by coronavirus have battered the export-reliant economy, sending GDP growth plunging to 2.91 percent in 2020 — the lowest reported in three decades.
The General Statistics Office (GSO) in Hanoi said fourth quarter growth was at 5.22 percent, but the annual figure was dragged down by a contraction of 6.02 percent in the third quarter.
“The complicated situation of the Covid-19 pandemic since the end of April seriously impacted commercial and service activities… pulling down the growth of the service sector and the whole economy,” GSO said in a statement.
Article continues after this advertisementFor at least three months, almost the entire country was in complete lockdown, with a huge impact on production, supply chains and businesses.
Article continues after this advertisementGSO head Nguyen Thi Huong gave an upbeat gloss, saying that achieving even the modest growth under such difficult circumstances was a “huge success” in remarks reported by state media.
Vietnam is now trying to reopen by shifting away from its strict “zero-covid” policy.
Around 88 percent of adults in Vietnam have been fully vaccinated, the country’s health ministry said.
