Day: February 7, 2022

The Government has issued a resolution on socio-economic recovery and development programme, and the implementation of the National Assembly’s resolution on fiscal and financial policies in support of the programme.

Minister of Planning and Investment Nguyen Chi Dung said, to fulfill the economic growth target of 6.5-7 percent for 2021-2025, the programme is set to ensure rapid recovery and development, as well as safe adaptation to the COVID-19 pandemic in 2022-2023.

Economic reopening will be carried out firmly and safely, and under a roadmap that matches the country’s pandemic combat strategy, vaccination capacity and the supply of treatment drugs and medical equipment, he said.

The minister added that the programme aims to help enterprises with recovery, especially their special resistance in certain sectors that are hit hard by the pandemic, improve infrastructure and encourage investment in the public-private partnership (PPP) form.

Public investment in national strategic, key infrastructure projects will be stepped up, while greater efforts will be made in reforming administrative procedures and improving the business environment.

According to the minister, there will be risk management policies in tandem with measures to stabilise the macro economy.

The programme should promote the active role of enterprises in production and business, regardless of any developments of the pandemic, Dung said, emphasising the need to maintain macro-economic stability, major economic balances and sources of income.

It is a must to ensure social security for people, particularly the poor and vulnerable groups, he said.

The economic stimulus package should be rolled out in a synchronous, effective, timely and stable fashion in the time ahead, and assistance should target the sectors that are able to recover.

The minister suggested mobilising more international financial resources and managing risks, saying one of the challenges is how to accelerate disbursement in the next two years amid the current pending disbursement of public investment./.

Source: Vietnam News Agency

The Vietnam Airlines Group has planned to arrange nearly 200 more flights from February 7 to 10 so as to meet passengers’ rising demand for travel to the southern region following the end of the Tet (Lunar New Year) holiday, with approval of the Civil Aviation Authority of Vietnam (CAAV).

The flights will be on 14 busiest domestic routes, particularly between HCM City and Hanoi, Da Nang and Hai Phong, among others.

Passengers can purchase air tickets at websites, mobile apps and ticket offices nationwide of member carriers of Vietnam Airlines Group, comprising Vietnam Airlines, Pacific Airlines, and VASCO.

They are advised to make health declarations on PC-COVID app before reaching the airport to save time.

It is the latest flight adjustment during this year’s Tet by Vietnam Airlines Group. In late December 2021, the group announced to increase flight frequency on many routes, with a daily average of 300 flights per leg.

The number of seats was also raised by 120 percent to serve the Lunar New Year peak, which falls in late January and early February./.

Source: Vietnam News Agency

Vietnam’s recovery is set to gather momentum in 2022, as domestic demand rebounds and export performance remains strong, according to Fitch Ratings.

In its recent report, Fitch said that improving levels of vaccination in the country should reduce the risk that the recovery is set back by further COVID-19 outbreaks. However, the evolution of the pandemic remains subject to uncertainties, in particular as daily cases have trended higher in recent months.

Economic growth in 2021, at 2.6 percent, was much weaker than the 7 percent that Fitch had expected in April 2021, when it affirmed Vietnam’s rating at ‘BB’ and revised the Outlook to Positive, from Stable.

According to Fitch, this partly reflected a 6 percent year on year contraction in real GDP in the third quarter last year as the authorities moved to control a surge in COVID-19 cases. Further pandemic-related shocks, while possible, are unlikely to be so severe, because the government has shifted from a “zero COVID” approach to one of flexible adaptation as vaccination rates have increased, it said. Growth will be led by exports, which rose by 19 percent in 2021, it said, adding that it expects goods demand growth to decelerate in the developed world in 2022 as activity normalises and services demand picks up. Inward investment remained strong in 2021, at 19.7 billion USD, down only slightly from 20 billion USD in 2020. The strong export performance that Fitch expects in 2022-2023 will catalyse domestic investment and consumption, through positive spill-overs, for example from job creation.

Fitch’s current forecasts see Vietnam’s public debt/GDP ratio broadly stable over 2022-2023, at around 41 percent of GDP. Since this forecast, the government has approved a fiscal stimulus package covering the period, worth around 15.3 billion USD (roughly 4 percent of 2021 GDP), but Vietnam’s debt/GDP level will remain below the peer median of 56.6 percent in 2022 and 56 percent in 2023, it noted. The package continues certain tax breaks and exemptions, which will weigh on the revenue base, but these may be rolled back as the recovery strengthens. It also contains additional infrastructure spending that could help to underpin medium-term growth prospects, Fitch commented.

Non-performing loans in Vietnam’s banking sector rose in 2021 amid disruption to economic activity associated with efforts to control COVID-19 outbreaks, it said, adding that a return to strong economic growth should reduce risks to asset quality. It believed the pace of bank capital accrual will remain modest in 2022-2023, as much of the internal capital generated is likely to be consumed by rapid balance-sheet growth. Last April, Fitch held that a material reduction in risks posed to the sovereign balance sheet from weaknesses in the banking sector could lead to a rating upgrade./.

Source: Vietnam News Agency