Hanoi (VNA) – Institutional reform, deeperintegration and digital transformation are important for Vietnam to recover theeconomy, which has been battered by the COVID-19 pandemic, President of VietnamChamber of Commerce and Industry (VCCI) Vu Tien Loc said on November 24.

In his opening remarks at the Vietnam Business Forum 2021, Loc laid stress onthe gloomy outlook for the global economy due to the pandemic. However, theAsian Development Bank forecasts the Vietnamese economy would grow 2.8 percentin 2020, and 6.3 percent in 2021.

The bank said in its Asian Development Outlook 2020 that Vietnam is showing itsbetter recovery ability as compared to similar economies, giving positiveprospect for the Vietnamese economy in mid- and long-term.

However, Loc said Vietnam has not overcome challenges yet, as businesses havenot made recovery from the outbreak and millions of workers have beenunemployed.

He spoke highly of the Party and Government’s first support package, which gavetimely and effective assistance to the economy, recommending the second onefocus on potential sectors such as aviation and tourism.

Along with fiscal and credit support, the Government’s efforts to renewinstitutions, remove bottlenecks for the market, and better business climateare key motivation for the development of local businesses, he stressed.  

He also described regional and international integration, and digitaltransformation as fulcrum for the country’s economic growth.

Meanwhile, Trinh Minh Anh, a representative from the National SteeringCommittee for International Integration, said as Vietnam and many other nationsare facing a tough time with the rising tide of protectionism and populism, thenation should enhance international integration, and capitalise on the signednew-generation trade pacts such as CPTPP, EVFTA and RCEP.

Touching on post-pandemic business trend, Vu Tu Thanh fromthe US-ASEAN Business Council said doing business via digital platforms is agreat opportunity that Vietnam should fully tap.

He added Vietnam’s digital economy is expected to reach 14  billion USD in 2020, a year-on-year surge of16 percent despite the pandemic, and the value is forecast to reach 50 billionUSD in the next five years.

According to Vice Chairman of the Hanoi Supporting Industries BusinessAssociation Nguyen Van, the Government should create rational strategies andpolicies to help local firms better engage in the global value chain./.