Boosting confidence in Vietnam’s pandemic fighting efforts and economic recovery

4/8/2021| 10:50

Vietnam has begun to see dismal data on its economic performance in the third quarter with the negative impacts of the latest COVID-19 outbreak being felt in every aspect of daily life.

Boosting confidence in Vietnam’s pandemic fighting efforts and economic recoveryIndustrial production fell sharply in many provinces and cities in July due to COVID-19.

The index of industrial production in July increased by a mere 1.8% against the previous month, the lowest figure in the past seven months. As a result of social distancing measures, industrial production fell sharply by double digits in many localities including Ho Chi Minh City, Long An and Ca Mau. Public investment disbursement dropped 1.7% from the previous month and plummeted 12.4% from a year earlier. Foreign investment was low due to the lack of large projects.

It is notable that the number of enterprises forced to close now exceeds that of newly established ones. The plunge in resources invested in production and business was reflected in negative growth figures in capital and the number of workers registered by new enterprises.

In the meantime, the battle against COVID-19 continues to face numerous difficulties as the Delta variant is spreading quickly in factories and residential areas, while the mass vaccination programme has only just begun and herd immunity will not be achieved until late 2021 and early 2022.

Many are worried that the fourth COVID-19 wave could disrupt Vietnam’s economic recovery and Vietnam will likely miss the global rebound.

Amid great urgency, the National Assembly agreed to increase the powers for the Government and the Prime Minister to decide on urgent solutions such as restricting the movement of some vehicles, requiring people to stay at home and applying special emergency measures to prevent the spread of the virus.

The Government and the Prime Minister are also allowed to enact measures not stipulated under the law, or different from existing law, in licensing the circulation, production and procurement of medicines, medical equipment and chemicals as well as well as buying in quantities larger than needed as a backup against the worsening situation.

Along with the government’s flexible policies, the National Assembly’s decision is an important legal framework for Vietnam to soon curb the epidemic and return to normal life.