Vietnam continues to be one of the fastest growing economies in the world, said David Jarkulisch, a diplomat from the Embassy of the Czech Republic in Hanoi.

While the world economy plunged into a deep recession as a result of the COVID-19 pandemic last year, Vietnam was one of the few countries to record positive GDP growth, he said in an article recently published on the website of the Czech Ministry of Foreign Affairs.

The article highlighted that Vietnam’s economic growth rate reached a remarkable 2.9% last year, adding that continued GDP growth has turned Vietnam into the fourth largest economy in Southeast Asia, with nominal GDP of US$340 billion, surpassing Singapore (US$337 billion) and Malaysia (US$336 billion).

The growth was driven mainly by exports and foreign investment, the diplomat said, adding that it was also contributed by domestic consumption and people’s high confidence in a rapid economic recovery.

The timely prevention of the spread of the pandemic has enabled Vietnam to keep the majority of the domestic economy running, and only sectors related to tourism experienced a significant decline.

Government spending has also created an important impetus for the economy to maintain its growth. Last year, the government approved a series of economic stimulus packages valued at US$29.5 billion (about 11% of the national GDP).

The article pointed out that despite the economic crisis last year, foreign investment in Vietnam totaled around US$20 billion (approximately the same volume as in 2019).

Last year, the export-oriented industry was again the main driver of the economy, the article said.  

It noted that the tourism sector was affected greatly by the pandemic, with foreign visitors dropping nearly 80% from more than 21 million in 2019. 

Foreign remittance also fell for the first time in 11 years to US$15.7 billion compared to nearly US$17 billion in 2019. However, Vietnam still remained the ninth largest recipient of remittances in the world.

The national economy is forecast to grow significantly again this year, ranging between 6-6.8%, and be mainly driven by the continuing inflow of foreign investment and robust domestic consumption, the diplomat predicted.