Vietnam Premier Says Economy Faces More Virus-Related Risks

(Bloomberg) -- Vietnam Prime Minister Pham Minh Chinh warned the nation’s economy will continue to face pandemic-related risks ranging from a widening state budget deficit to rising bank bad debts this year, according to the government’s website.

Chinh said the challenges will require “very skillful” measures, the website reported, citing the premier during a meeting with local government officials on Wednesday.

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The difficulties facing the economy include struggling businesses, disbursement of public investments at a multi-year low, the state budget’s increasing non-recurring revenue and the pandemic’s affect on efforts to restructure the economy, the prime minister said. 

The finance ministry estimated the 2021 state budget deficit to be below 4% of gross domestic product, the government’s website reported, citing information from a ministry meeting on Thursday.

State budget revenues were estimated at 1,563 trillion dong, or 16% higher than planned, with state spending seen at 1,879 trillion dong, an 11% increase from the government’s plan, according to the report.

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