Creative problem-solving measures emerge
Amid the complicated developments of the COVID-19 pandemic in 2021, Hai Phong city had its Gross Regional Domestic Product (GRDP) reaching 12.38 percent, becoming the leading locality in the country and five times higher than the GDP of Vietnam (2.58 percent).
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A worker at the Garment 10 Corporation - Joint Stock Company |
According to a report by Chairman of the Hai Phong Municipal People’s Committee Nguyen Van Tung delivered at the year-end meeting of the Municipal People’s Council, the city’s total State budget revenue reached over VND 90,400 billion, an increase of 7 percent compared to 2020, and 17 percent compared to the set target. The Index of Industrial Production (IIP) saw an increase of more than 18 percent compared to 2020, four times higher than the average rate of the country. Furthermore, the city attracted USD 3.1 billion in foreign direct investment (FDI) last year, two times higher than 2020 while the export turnover was over USD 25 billion, an increase of over 23 percent in comparison to 2020.
To achieve these numbers, Chairman of the Municipal People’s Committee Nguyen Van Tung affirmed that the city has creatively and effectively implemented the dual targets, namely the COVID-19 prevention and control and the socio-economic development. Till now, the city has fully administored two doses of COVID-19 vaccine for people above 18 and children aged from 12 to 17, installed central oxygen supply systems in hospitals at district and higher levels, established 226 mobile medical stations to take care of COVID-19 patients in communes, wards and towns.
Quang Ninh, the neighboring locality of Hai Phong, also had an impressive growth rate with the GRDP in 2021 reaching 10.28 percent, an increase of 10.28 percent compared to 2020, and 17 percent higher than the average rate of the whole-country. These results were achieved thanks to the development of a synchoronous infrastructure system, which included transport infrastructure, information technology, telecommunications, economic zones and seaport services.
Meanwhile, among the top businesses in 2021 in term of sustainable growth and effective support of social welfare, the Military Industry-Telecoms Group (Viettel) was in the leading position. Notably, Viettel continued to be the most valuable brand in Vietnam in 2021 according to the announcement of the world's leading brand valuation company Brand Finance, with its brand valuation of more than USD 6 billion, increasing by USD 260 million compared to the previous year. Also, the General Department of Taxation announced that the group has been the largest taxpayer for five consecutive years.
In the ranking of 2021, Viettel's brand was worth 2.2 times more than the brand that follows and equivalent to the total value of the three brands in the next positions.
At the beginning of 2021, Viettel was also listed in Brand Finance's list of Top 500 most valuable brands in the world. Accordingly, Viettel was at 325th position, up 32 places compared to 2020 and was the only telecommunications brand in Southeast Asia present in this ranking.
Although the business activity was affected by the pandemic, Viettel was still loyal to its vision for people and its pioneer role in creating digital society. Apart from its business, the group was also active in applying technologies to the COVID-19 prevention and control as well as giving fund and service to support pandemic-hit enterprises and people.
Many bottlenecks should be removed
The Vietnamese economy in 2021 saw many bright spots and also faced numerous bottlenecks that need to be eliminated. According to the analysis of economic experts, the COVID-19 pandemic has affected not only the economic sector but also social affairs.
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A production line of Son Ha Group in Dan Phuong, Hanoi |
In 2021, about 119,800 enterprises suspended business, of which 16,700 enterprises withdrew from the economy. Prolonged period of social distancing disrupted supply chains of goods and labor. Unemployment led to spending cut and the decrease of the economy’s demand. The total retail sales of consumer goods and services decreased by 3.8 percent compared to the same period last year.
The agricultural and aquaculture sector, which is considered as a pedestal of the economy, also faced numerous difficulties in 2021 such as the increased price of agricultural supplies and feed sources, the complicated developments of epidemics in pig farming and poultry industry, and the low output product price.
Numerous enterprises ran into difficulties in production and commodity circulation, which has led to higher prices for goods and the risk of inflation.
Due to the decrease of the economy’s demand, the consumer price index (CPI) in 2021 was lower than the 4 percent target. However, the risk of inflation in 2022 remains high.
The price of materials, goods, and service in the world will continue to increase. As demand increases and supply decreases, the price of crude oil will also go up. The lack of investment in oil exploitation amid the increasing demand of the market might possibly lead to higher oil price for years to come.
In addition, the domestic economy greatly depends on imported materials, which makes up 37 percent of the overall materials for the whole-economy. The gasoline cost makes up 3.52 percent of the overall cost of the economy. Therefore, the higher global oil price will lead to the higher price of imported material and domestic fuel and material.
Furthermore, the fiscal stimulus and supporting packages for enterprises might put a great pressure on inflation in 2022.
A hope for lunar New Year
Numerous opinions discussing current developments and recovery of Vietnam’s economy in 2022 were delivered at the Vietnam Economic Forum 2021, which was co-organized by the National Assembly’s Economic Committee, the Party Central Committee's Economic Commission, and the Vietnam Academy of Social Sciences (VASS).
Many experts hoped that the country will return to normal state and the economy will recover soon as the pandemic is effectively put under control and the domestic vaccine is produced. The Government has promoted provisional regulations on safe, flexible adaptation to and effective control of COVID-19 as well as made good use of opportunities to enhance socio-economic recovery and development with comprehensive solutions.
According to Chairman of the National Assembly Vuong Dinh Hue, the administration should change the mindset in supporting people and enterprises. In particular, it is necessary to focus on the organic and cohesive relationship between the State budget, the bank credit, and the capacity and needs of enterprises and people, he noted. Enterprises and people create wealth for the society, contribute to the State budget as well as generate cash flow for the banking system. Therefore, removing difficulties for enterprises and people is also to nurture the State budget revenue and develop the banking system.
The top legislator said that Vietnam treasures experience from international research, but will make it suitable for Vietnam's circumstances. For example, in developing countries like Vietnam, the tax exemption and reduction policy will benefit more people and enterprises, he stressed.
The Vietnamese economy overcame unprecedented challenges in 2020 and 2021 and is expected to continue following the strategy of recovery and sustainable development in 2022.
Translated by Trung Thanh