Vietnam Business Channel

Virus plunges Vietnam growth to lowest level in decades


Vietnam reported this week that its economic growth was2.91% in 2020, the lowest rate in more than 30 years as the country battled the coronavirus pandemic. Vietnam has long been among Asia's fastest-growing economies, and the 2020 figure marked a sharp fall from last year's GDP growth of 7%.

However, when compared to the recession across the globe that most countries have experienced, Vietnam's performance looks rosy and officials hailed it as a "huge success".

The Vietnam government’s, General Statistics Office (GSO) said in a statement Sunday that growth in the fourth quarter of the year measured 4.48%, contributing to the year-end figure of 2.91%.

The GSO said in a statement that, "In the context of complicated development of the COVID-19 pandemic that badly impacts the socio-economic situation, this was a huge success for Vietnam."

Compared to Europe, the United States and many other countries that have suffered high infection and mortality rates, Vietnam, which has a population 96 million, has recorded fewer than 1,500 coronavirus cases and seen only 35 deaths.

Because of the government’s quick response to the pandemic in January and February, which has included mass quarantines, extensive contact-tracing and strict controls on movement, the country has been able to keep factories open and has been able to get people back to work swiftly.

The World Bank recently issued a report on the Southeast Asia’s economic prospects in 2021 and said in its report that Vietnam will enjoy continued success in 2021 and that "Looking ahead, Vietnam's prospects appear positive as the economy is projected to grow by about 6.8% in 2021 and stabilize at around 6.5% in the 2022 ~ 2025 period."




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