Institutional reform, deeper integration and digital transformation are important for Vietnam to recover the economy, which has been battered by the COVID-19 pandemic, President of Vietnam Chamber of Commerce and Industry (VCCI) Vu Tien Loc said on November 24.

President of Vietnam Chamber of Commerce and Industry (VCCI)
Vu Tien Loc at the event (Photo: enternews.vn)

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

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

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

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

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

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

Meanwhile, Trinh Minh Anh, a representative from the National Steering Committee for International Integration, said as Vietnam and many other nations are facing a tough time with the rising tide of protectionism and populism, the nation should enhance international integration, and capitalise on the signed new-generation trade pacts such as CPTPP, EVFTA and RCEP.

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

He added Vietnam’s digital economy is expected to reach US$14 billion in 2020, a year-on-year surge of 16% despite the pandemic, and the value is forecast to reach US$50 billion in the next five years.

According to Vice Chairman of the Hanoi Supporting Industries Business Association Nguyen Van, the Government should create rational strategies and policies to help local firms better engage in the global value chain.