United Nations Resident Coordinator a.i. in Viet Nam, UNDP Resident Representative for Viet Nam Caitlin Wiesen expressed her belief that Viet Nam’s economic growth will accelerate this year as tourism, transport and other services are opened.
In her recent interview with the VGP, Caitlin Wiesen commended the Government of Viet Nam for their extraordinary vaccine program that has been rolled out in a very equitable way and by placing people's health at first and foremost. It has enabled the Government and the economy to open up.
All COVID-19 indicators are trending downwards, case numbers, hospitalization and deaths and at the same time restrictions for schooling and business are being lifted. These are promising signs for Viet Nam and its economic recovery.
The World Bank (WB) has downgraded its estimates for Viet Nam's economic growth in 2022 as it has done with other countries around the world because of the influence of so many crises. However, Viet Nam is well placed and its economic growth will certainly continue and reach the same level as the country would have wished, noted Caitlin Wiesen.
Regarding challenges for Viet Nam in 2022, she said that COVID-19 has challenged livelihoods, and exacerbated inequalities in Viet Nam. In addition, the nation has to cope with climate crisis, rising fuel prices, supply chain disruption due to prolonged lockdowns, and the knock on effects of the conflict in Ukraine.
In response, Viet Nam's recovery needs to generate economic growth, green growth and inclusive growth. The economic rebound needs to achieve the dual objectives of stimulating economic growth and supporting vulnerable households, who were the worst affected by the pandemic.
There is an important role for the Government to play in leading an environmentally sustainable growth, and deepening the capabilities of the domestic sector.
For green growth, Caitlin Wiesen recommended the Government increase investment in a Just Energy Transition and more climate mitigation and adaptation activities.
For inclusive growth, she suggested launching a comprehensive approach to improve allocation of financial resources based on socio-economic outcomes, and increasing the supply of domestic finance.
The Government therefore plays an important role in ensuring that growth is sustainable beyond this year. This will include increasing supply of long term finance, facilitating growth among domestic firms through technology upgrade and public investment and increasing climate finance, among others.
It is not possible to go back to "normal" or "new normal". Instead, it is essential to look at a new form of growth right in this context, highlighted Caitlin Wiesen, adding that given the climate threats and COVID-19 still looming, Viet Nam needs to plan and increase its resilience for future shocks, both human and natural shocks.
The Government needs to set the objective of post-COVID-19 recovery along the achievement of the socio-economic development plan and achievement of the Sustainable Development Goals (SDGs).
To meet the objective of achieving high-income status by 2045, Viet Nam needs to invest a much larger share of national output into building national competitiveness, increasing value-added in domestic industries, and upgrading technological and innovation capabilities.
