Government forms task force on post-pandemic recovery package

The government last Sunday established a steering committee headed by Deputy Prime Minister Le Minh Khai to oversee implementation of its $15 billion post-pandemic economic recovery package.

The committee’s deputy heads are Minister of Planning and Investment Nguyen Chi Dung, Deputy Minister of Finance Vo Thanh Hung and State Bank Deputy Governor Pham Thanh Ha. Other members include leaders of several ministries and state agencies.

The steering committee will help the Prime Minister solve important interdisciplinary tasks in implementing the VND350 trillion ($15 billion) recovery package, approved by the National Assembly this January.

At the legislative body's sitting this June, many National Assembly members urged the government to accelerate the execution of the recovery package. They said the package had been approved "in the most urgent manner", therefore it needed "special determination" to generate resources and provide post-pandemic recovery support to businesses and citizens.

Deputy PM Khai had told lawmakers then that the task was “quite new” and required caution so as to avoid mistakes in disbursement of such a huge package.

Antoinette Sayeh, deputy managing director of the International Monetary Fund (IMF), in mid May commented that Vietnam’s impressive vaccination drive and timely program for recovery and development have helped create a positive post-pandemic outlook for the country.

But the institution, in its end-of-mission statement for the country this April, noted that the recovery has been uneven as the service sector still lags, while financial risks and inequality have likely risen.

Vietnam's economic expansion hit 7.72% in the second quarter of the year, a 12-year record high, with the figure for the first six months reaching 6.42%. Growth higher than pre-pandemic levels was recorded in sectors like processing, manufacturing, goods retail, consumer services, and exports, according to the General Statistics Office (GSO).

The World Bank on June 7 raised Vietnam’s GDP prediction this year to 5.8% from 5.3% in its April forecast. The revision derives from a revival of activity supported by the removal of Covid-related restrictions in the country. “Vietnam's economic expansion is expected to strengthen further to 6.5% in 2023 and 2024.”

Credit rating agency S&P Global Ratings in late May revised up the country’s long-term sovereign credit rating to BB+, a "stable" outlook. Vietnam is one of only two economies in the Asia-Pacific region to have been upgraded since the beginning of the year, the other being Taiwan.