GDP expected to increase by 6.5 percent in 2021

The socio-economic report drafted by the Ministry of Planning and Investment (MPI) states that with the annual growth rate estimated at over 2 percent, aiming to reach about 3 percent, Vietnam is the country with the highest positive growth rate among five major economies in Southeast Asia (ASEAN-5). And it is one of the 16 most successful emerging economies in the world. 

The average consumer price index (CPI) increased by 3.5-3.9 percent, while the target is below 4 percent. The mobilization of investment capital for social development is estimated at 33.6 percent of gross domestic product (GDP), while the target is 33-34 percent of GDP. The important bright spot of the economy is the increase in exports, with the trade surplus in the first eight months reaching US$13.5 billion amid the context of a severe decline in global trade. The export of the domestic economic sector grew strongly, increasing by 15.3 percent in the past eight months.

Vietnam also continues to maintain a high ranking on the innovation index, topping the lower-middle-income countries and ranking third in the ASEAN after Singapore and Malaysia. The work of ensuring social security and reducing poverty has accelerated. The rate of underprivileged households decreased by 1-1.5 percentage points, while it decreased by over five percentage points at poor districts, achieving the set target. Vietnam's Sustainable Development Index in 2020 has increased by five notches, ranking at the 49th place out of 166 countries and territories.

According to the MPI, by 2021, Vietnam needs to focus on effectively implementing the dual goal of both preventing the pandemic, protecting the people's health, and restoring and developing socio-economic conditions in the new normal state. Setting the key targets, the MPI said that the GDP in 2021 would increase by about 6-6.5 percent compared to 2020, and the average growth rate of the CPI would be at about 4 percent.

According to the preliminary report on the implementation of the five-year socio-economic development plan from 2016 to 2020, sent by the MPI to the Economic Committee of the National Assembly, out of a total of 18 targets with preliminary evaluation, 14 targets were satisfied and exceeded. Four unsatisfactory ones include economic growth, per capita GDP, the rate of trained labor, and the unemployment rate in urban areas. The scale of GDP continues to expand, estimated at $269 billion by 2020, 1.4 times higher compared to that in 2015. The GDP per capita in 2020 estimates at $2,750 per person, about 1.3 times higher than that in 2015. The large balances of the economy ensured.

After the Economic Committee has given its opinion, this report will be finalized by the Government and submitted to the National Assembly together with the official verification report of the Economic Committee.