Long-term plan for post-pandemic economic recovery needed: Insiders

Director of the Central Institute for Economic Management Tran Thi Hong Minh speaks at the workshop on April 22 (Photo: VNA)

Hanoi (VNA) - As the COVID-19 pandemic may continue to develop in an unpredictablefashion despite vaccination campaigns being carried out in many countries aroundthe world, experts have said that Vietnam needs to identify and adopt a long-term plan for post-pandemic economic recovery.

They were speaking at a workshop held by the Ministry of Planning and Investment’sCentral Institute for Economic Management (CIEM) on April 22 to release areport on making economic recovery and institutional reforms intertwined post-pandemic.

COVID-19 has damaged the global economy, they said, forcing both developed anddeveloping countries to speed up institutional reforms in combination with accessingthe Fourth Industrial Revolution and the digital economy.

Having largely brought the pandemic under control this year, Vietnam has seen remarkablesocio-economic recovery.

The resumption of international flights and the launch of vaccine passportshave been discussed, with a view to opening up the economy in a safe manner.

According to CIEM Director Tran Thi Hong Minh, the report highlights severalconsiderations for economic recovery and institutional reform in the time to come,including macro-economic stabilisation, economic institutional innovation andinternational integration, the State role, and economic space for the private sector.

The time to carry out economic reforms should be studied carefully during post-pandemiceconomic recovery, she added.

Regarding the reform process for Vietnam recommended in the report, Nguyen AnhDuong from CIEM said that it should continue its COVID-19 prevention work andits efforts to remove bottlenecks facing the business community and workers andpromote economic institutional reform this year.

In 2022, it is necessary for the country to carry out economic recoverymeasures in tandem with economic institutional reform. Meanwhile, solutions tosupport economic recovery should be withdrawn, and focus should be sharpened oneconomic institutional reform, Duong added.

Vietnam can achieve better economic growth if it loosens monetary and fiscalpolicies, but it could suffer from higher inflationary pressure, he pointed out.

Loose monetary and fiscal policies could result in higher economic growth andimprovements in productivity if combined with institutional reform, he added,describing this as an effective way to develop the economy in a rapid andsustainable manner in the face of global economic risks and uncertainties./.

VNA