Vietnam trims 2020 economic growth forecast to around 6% as coronavirus risks

Vietnam has revised its gross domestic product growth forecast 0.55-0.84 percentage point downwards to around 6 percent for 2020 as compared with this year’s projected 6.8 percent growth amid the coronavirus epidemic fears.

If the epidemic is controlled in the first quarter, the whole-year GDP growth could reach 6.25% and if the crisis extends to the second quarter, the growth may be about 5.96%.

The ministry said that tourism, trade, consumption, transportation, and aviation are seriously affected sectors after the government announced restrictions and bans on domestic travel, and flights between Vietnam and China.

Trade with China and foreign investment flow will also be affected or interrupted. It is expected that Vietnam’s exports revenue may drop 8.3% year-on-year in first quarter to $54 billion while imports is seen to reach $56 billion, down over 3%.

Earlier, Vietnam’s National Assembly approved the 2020 GDP growth target of 6.8% and the average consumer price index growth rate below 4%. The total export revenue was projected to increase by 7%.

At the same meeting, Prime Minister Nguyen Xuan Phuc reaffirmed the Government would not cut the preset growth target for this year despite possible negative impacts of the new coronavirus epidemic.

Prime Minister Nguyen Xuan Phuc seen at the meeting. Photo: VGP

He called for better and more drastic solutions, including economic and institutional ones in order to realize the double missions of combating the epidemic and ensuring growth.

Phuc stressed that dealing with Covid-19 virus and sluggish behaviors at work would help us to advance national development.

He demanded inferior levels to stay calm and determined in the fight against Covid-19 epidemic while taking measures to ensure business operations.

As of Thursday, Vietnam has reported 16 cases of Covid-19 infection, seven of whom have been cleared of the virus and discharged from hospitals. The northern province of Vinh Phuc has been hit hardest with 11 infection cases.

The epidemic has killed 1,369 people and infected 60,347 others in the world as of February 13th. 

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► Novel coronavirus fear slows down Vietnam's thriving tourism industry

Source: VGP