Vietnam should continue support for vulnerable groups: IMF official
Vietnam will record positive economic growth in 2021, at around 6-7 percent, if the country continue support for vulnerable groups in the economy, as well as the freshly-rolled out vaccination campaign, said Jonathan Ostry, Deputy Director of the Asia and Pacific Department of the International Monetary Fund (IMF).
A corner of HCM City - the southern largest economic hub of Vietnam (Photo: VNA)
Hanoi (VNA) – Vietnam will record positive economic growth in 2021, ataround 6-7 percent, if the country continue support for vulnerable groups inthe economy, as well as the freshly-rolled out vaccination campaign, saidJonathan Ostry, Deputy Director of the Asia and Pacific Department of theInternational Monetary Fund (IMF).
The Southeast Asian country needs to lay a foundation for strong growth in the mid-term,including ensuring sufficient revenue resources for infrastructure developmentand implementation of public investment, he stressed.
It is necessary for the nation to ensure a resilient financial system, andcontinue efforts to better the investment climate, Ostry added.
Regarding a plan that is being drafted by the Vietnamese Government to assistenterprises during the pandemic, the IMF official held that the country’sfiscal policy should be loosened to support economic activities, and limit negativeimpacts from the pandemic.
Policy adjustments depend largely on the speed of economic recovery at the globallevel, which is undergoing a lot of uncertainties, he said.
Pointing out weak uptake of tax deferrals in Vietnam, particularly in thehardest-hit sectors of the economy, the IMF recommended introduction oftemporary corporate income tax (CIT) loss-carry backwards to improve firms’cash flows, better targeting of temporary CIT reductions to benefit distressedbut viable small-and medium-sized enterprises, and introduction of temporaryprovisions for accelerated depreciation or investment tax credits to lower touser cost of capital and encourage investment.
He moved to underscore that Vietnam’s economic growth story in the past threedecades is notable since it is sustainable and inclusive growth that helpsimprove local livelihoods.
Thanks to market-oriented reforms which enable improvements in the businessclimate, and attraction of huge amount of FDI flows, Vietnam has risen frombeing in the group of the world’s poorest country to gaining the“middle-income” status.
The country should work more to better the business environment and ensure anequal playground, he said, adding this includes reforms geared towardssimplifying and reducing the regulatory burden for domestic firms, easing entrycosts for enterprises, continued reform of state-owned firms, and enhancinggood governance.
Additionally, he suggested Vietnam enhance human capital and technology accessto boost labour productivity, which facilitate investments in more complicatedproducts that can gain better competitive edge in the international market./.
Vietnam’s services sector is targeting a growth rate of 7-8 percent in the 2021-2030 period, higher than the economy’s average growth rate, and eyeing to account for 50 percent of GDP by 2030.
Vietnam’s digital economy will likely reach 52 billion USD in value by 2025, according to the e-Conomy SEA 2019 report by Google, Temasek and Bain & Company.
Leaders of European businesses have started 2021 with optimism about the trade and investment environment in Vietnam, according the Business Climate Index (BCI) for the first quarter of 2021 released by the European Chamber of Commerce (EuroCham) on April 30.
Developed with state-of-the-art infrastructure, the Da Nang FTZ is designed to become a leading regional economic centre and a strategic growth pole in Vietnam’s new development landscape.
The Binh Duong Association of Supporting Industries (BASI) is expected to promote the usage of domestically manufactured components while supporting businesses in accessing international markets, strengthening linkages, and promoting deeper integration into global supply chains.
PwC Vietnam forecasts a vibrant M&A market in Vietnam’s healthcare sector in 2025, driven by rising demand for high-quality medical services and a growing middle class. Pharmaceutical companies, private hospitals, and specialised medical facilities, particularly in ophthalmology and oncology, are predicted to be key targets for M&A.
The central province of Quang Nam is set to become a hub for the medicinal plant industry, with Ngoc Linh ginseng designated as the core crop, under the Prime Minister's decision issued earlier this year.
The North-South Expressway project is scheduled for completion by 2030, aiming to establish the groundwork for Vietnam’s modern railway industry and stimulate regional economic development, positioning the country for a significant economic leap in the era of national rise.
The probe, initiated on June 11 following a petition by the US Coalition for Fair Trade in Hardwood Plywood, targets products classified under HS Code 4412 and 9403 imported from China, Indonesia and Vietnam.
Sun PhuQuoc Airways was born as a perfect piece in Sun Group’s strategic vision to build a premium ecosystem of tourism, entertainment, real estate, and aviation. With a pioneering ambition, Sun PhuQuoc Airways is not just an airline, but a symbol of connection – bringing the world to Phu Quoc and taking Phu Quoc to the world.
A key change in the draft decree is a provision requiring bank transfers for gold transactions valued at 20 million VND (765 USD) and above, to enhance transparency and verify customer identities.
In the first four months of 2025, trade turnover between Vietnam and Cambodia surpassed 3 billion USD, marking a 7% increase compared to the same period in 2024.
On June 19 alone, a total of 2,005 trucks completed customs clearance at Lang Son’s border gates — the highest single-day figure ever recorded in the province. Of these, 634 carried exports and 1,371 imports.
The OECD Economic Surveys: Vietnam 2025 report focuses on analysing the country’s macroeconomic fundamentals, the impact of international integration on attracting foreign investment and trade, and the country’s prospects for developing a low-carbon economy.
Antoine Colin, Senior Vice President for Global Supply Chain Digital Transformation & Resilience at HP Inc., affirmed HP’s strategic commitment to building a supply chain and ecosystem in Vietnam and the region.
Deputy Director General of the Ministry of Industry and Trade (MoIT)’s Trade Promotion Agency Bui Quang Hung emphasised that logistics has evolved from a technical function into a core capability for Vietnamese exporters to maintain their competitive advantage in the US market.
A trade official has suggested companies work closely with shipping lines, airlines, and freight forwarders to monitor routes, transit times, and potential surcharges while exploring broader cargo insurance to cover risks like war and terrorism.
In addition to institutional reform, the agency is also rolling out key solution groups to combat counterfeit goods, imitations, and intellectual property infringements in the digital environment.
The event, co-organised by the Vietnam Trade Office in the UK and TT Meridian, a local importer of Vietnamese fresh produce, aims to build a national lychee brand and encourage broader recognition of Vietnamese fruits in a competitive, high-end market.
The industry's performance has been powered by bold investments in modern production lines, enabling Vietnamese firms to produce complicated products which were exclusive to advanced economies.
A corner of HCM City - the southern largest economic hub of Vietnam (Photo: VNA) 
