WB: VN’s economy stays resilient to external shocks
10:01 | 01/04/2020

VGP - While Viet Nam remains significantly exposed to the COVID-19 outbreak and the ongoing turbulence in the global financial markets, its economy stays resilient to external shocks in the first few months of 2020.

 While Viet Nam remains significantly exposed to the COVID-19 outbreak and the ongoing turbulence in the global financial markets, its economy stays resilient to external shocks in the first few months of 2020, according to the World Bank.

According to the World Bank’s East Asia and Pacific Economic Update April 2020, Viet Nam is strongly positioned to benefit from numerous free trade agreements that are coming into force over the forecast period. 

In the first two months, its exports have expanded by 8%, FDI inflows amounted to US$2.5 billion and retail sales were up by 5.4%, the bank said, noting that while prospects remain favorable for the Vietnamese economy in the medium term, GDP growth will be affected negatively by the recent coronavirus outbreak, now a global pandemic.

The WB cited preliminary estimates as suggesting that the rate of expansion of the economy could decline to about 4.9% in 2020. 

Over the medium term, growth is projected to rebound back to 7.5% in 2021 and converge at around 6.5% in 2022, reflecting an improved external demand and a firming of the services sector, as well as a gradual recovery in agricultural production, the WB added.

It also suggested Viet Nam manage external risks by diversifying its trade flows, improving its competitiveness and adhering to new trade agreements.

The World Bank Group is rolling out a US$14 billion fast-track package to strengthen the COVID-19 response in developing countries and shorten the time to recovery.

The immediate response includes financing, policy advice and technical assistance to help countries cope with the health and economic impacts of the pandemic.

The IFC is providing US$8 billion in financing to help private companies affected by the pandemic and preserve jobs. IBRD and IDA are making an initial US$6 billion available for the health-response. 

As countries need broader support, the World Bank Group will deploy up to US$160 billion over 15 months to protect the poor and vulnerable, support businesses, and bolster economic recovery.

By Thuy Dung

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