Vietnam has gained remarkable achievements in economic development in 2020, although this was a turbulent year for the entire world.
As a long-time resident of Vietnam and a dual national, I can only applaud the Government for its swift proactive measures to contain the pandemic and enable a relatively strong economic performance in 2020. The achievement of 2.91% GDP growth and also very few COVID-related deaths is more remarkable, when you compare this to the developed economies of North America and Europe and then take into account the size of Vietnam’s population, the long often porous border with China, and Vietnam’s limited medical resources and facilities. We must also remember that the severely impacted tourism and hospitality sector, which was major contributor to GDP, knocked at least 1% off GDP in 2020.
Our GDP growth was the highest in Southeast Asia and one of the highest in the world. This was in large measure due to the strong export performance and continued significant foreign direct investment (FDI).
Exports reached US$ 281 billion, an on-year increase of 6.4%, and registered FDI recorded US$ 28.53 billion, and whilst this was 25% down on 2019, it was still a great achievement bearing in mind the borders were effectively closed for most of the year. Another contributor to GDP growth was the increased public investment by the Government, as they sought ways to inject a stimulus package into the economy.