Source: Socialist Republic of Vietnam
The UK’s Globaldata.com has affirmed that Vietnam is one of a few countries to have controlled the pandemic to a certain degree, with a low number of infections and fatalities. The World Bank also forecast that Vietnam’s GDP would grow 2.8% this year and 6.8% next.
UK newswire bbc.co.uk also hailed the country for mitigating the economic damage caused by the pandemic and being the only country in the region on track to post growth in 2020.
Though Vietnam lacks the health infrastructure of wealthier countries, it has been widely praised for its public health measures, which quickly brought COVID-19 under control. It was quick to develop testing kits and used a combination of strategic testing and aggressive contact tracing to help control numbers, it said.
The country’s once-thriving tourism sector has taken a particularly heavy hit but the country has so far avoided the worst economic effects of the pandemic.
The newspaper also quoted VinaCapital’s chief economist Michael Kokalari as saying that people are buying new laptops or new office furniture, for work and for spending more time at home. A lot of these products are made in Vietnam.
The pandemic has also prompted more companies to consider manufacturing in Vietnam because of the need to diversify supply chains.
Kokalari added that Vietnam’s exports to the US increased 23% in the first three quarters compared to the same period of 2019, with electronics exports up 26%.
Meanwhile, Malaysia’s malaymail.com quoted chief Asia-Pacific economist Steve Cochrane as saying that, as of September, Vietnam together with regional states such as Singapore, Taiwan (China), Malaysia, and New Zealand had each reported year-on-year growth.
Overall, Cochrane said the baseline economic outlook called for growth across the entire Asia-Pacific region in 2021, with the fastest growth being in China, Vietnam, and Hong Kong (China).
The UK’s proactiveinvestors.co.uk, meanwhile, quoted the Vietnam Holding Fund as saying it anticipates that the country’s economy will return to growth above 6 percent next year given its “multiple engines of growth.”
The fund said the country’s resiliency during the pandemic “helped raise its profile as a major trade partner” and he expects trade relations between the country and other nations to “gain further momentum”.
According to data analysed by Bloomberg, Vietnam is projected to be one of the economies posting big gains in the world’s per-capita income rankings during the quarter-century through 2025.
Vietnam’s economy could grow bigger than Singapore by 2029, the UK-based Global Business Outlook recently cited the Development Bank of Singapore (DBS)’s report.
In its report, the DBS predicts that Vietnam could grow at a pace of 6% to 6.5% in the next 10 years.
Currently, the Vietnamese economy is worth US$224 billion. This means it covers 69% of Singapore’s economic size which is worth US$324 billion.
Moody’s Analytics, a unit of Moody’s Corporation, has forecast Vietnam, together with China and Hong Kong (China), would see the fastest growth in 2021, thus making the Asia-Pacific region lead the global recovery from the COVID-19 pandemic.