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New growth model to cope with disasters

Released at: 15:46, 11/03/2016

New growth model to cope with disasters

Head of Central Economic Committee believes in country's resilience in face of climate change and economic uncertainty.

by Luong Nhi - Le Chau

There is no basis to assume that the impacts of economic crisis and the El Nino weather pattern will become the double obsessions in Vietnam’s economy like they were two decades ago because the country is on the rise, Mr. Vuong Dinh Hue, Head of the Central Economic Committee, told local media.

He made the prediction amid some public concern about history repeating. In the 1997-1998 period Vietnam suffered from the severe effects of El Nino and economic crisis at the same time. Since the end of 2014 Vietnam has again suffered from the El Nino weather pattern, which is forecast to last more than 20 months - the longest in 60 years.

Mr. Hue acknowledged that climate change has had a negative impact on many regions around the country. By February 29, he said, 13 cities and provinces in the Mekong Delta officially announced saltwater intrusion and declared drought. Ca Mau province has experienced the most damage to its rice crop, losing over 49,000 ha.

Moreover, global warming has made Vietnam’s weather become unpredictable.

Under the circumstances, Vietnam has made great efforts to overcome the situation and to turn challenges in weather disasters into opportunities. Guidelines were identified in Resolution No. 24, which will drive the transformation to a new growth model.  

The International Monetary Fund (IMF) has said that Vietnam’s GDP growth could be 7 per cent within the next five years and it will be one of the fastest growing economies in the world. The World Bank, meanwhile, said that achieving growth of 6.68 per cent last year made Vietnam one of fastest growing economies in the region. Looking at internal and external factors, Mr. Hue believes in the resilience of the country’s economy.

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