Business & Economy

Vietnam lowers growth forecast due to Covid-19 impact

Ho Chi Minh City, Vietnam, Sep 15 (EFE).- Vietnam’s economy will expand between 3.5 and 4 percent in 2021, well below the government target of 6.5 percent, due to the impact of the current Covid-19 restrictions, state media reported Wednesday.

Minister of Planning and Investment Nguyen Chi Dung acknowledged on Tuesday that for the second consecutive year Vietnam will not reach its GDP growth target, Vietnam News Agency reported.

The country had ended 2020 with a growth of 2.92 percent.

He also warned that in order to reach a growth 3.5 percent it will be necessary to control the pandemic as soon as possible.

Although Vietnam was one of the most successful countries in containing Covid-19 in 2020, since April it has experienced a devastating outbreak that has caused almost 16,000 deaths.

Most of the deaths have occurred in its financial capital, Ho Chi Minh City, whose lockdown has affected services and industry.

Despite not meeting its targets, Vietnam was one of the few countries that ended 2020 with positive growth and had forecast a growth of over 6.5 percent thanks to the economy’s post-pandemic recovery, which has been cut short since April. EFE


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