International media give optimistic assessment of Vietnamese economy

The UK website Globaldata.com affirmed on November 19 that the country is one of the few that has managed to exert a certain degree of disease control, with this being seen due to its low number of COVID-19 infections and low rate of mortality.

In economic terms, the World Bank (WB) forecasts that the nation’s Gross Domestic Product (GDP) will grow by 2.8% this year and by 6.8% in 2021.

Renowned news agency bbc.co.uk outlined how the country has minimised the economic damage of COVID-19, being the only country in Southeast Asia that is on track to record growth this year.

“Although Vietnam lacks the health infrastructure of many wealthier countries, it has been widely praised for its public health measures, which quickly brought numbers under control. It was quick to develop testing kits, and used a combination of strategic testing, aggressive contact tracing to help control numbers.

The country has seen slower growth this year and its once-thriving tourism sector has taken a particularly bad hit, but it has avoided the worst economic effects of the pandemic,” the BBC article states.

The website also cited Michael Kokalari, chief economist of VinaCapital, a Vietnam-focused investment company, as saying that a number of factors have served to cushion the economic blow.

It can be considered that perhaps the most unexpected benefit from this year has been from the huge increase in the number of people working from home throughout the world.

“People have bought a new laptop computer or they’ve bought new office furniture, for both working and spending more time at home. Well, a lot of those products are made in Vietnam,” he said.

This can be seen as Vietnamese exports to the United States increased by 23% during the first three quarters compared to the same period in 2019, with electronics exports up by 26%.

Furthermore, UK website proactiveinvestors.co.uk gives quotes from the Vietnam Holding Fund, a closed-end fund, which predicted that the Southeast Asian economy will return to a growth rate of more than 6% in 2021 due to many factors driving growth.

Moreover, the website note that Vietnamese resilience to the pandemic has helped to enhance the country’s position as a major trading partner, providing added impetus to its trade relations with other countries.

The nation’s position, as a respected trading partner globally, is also likely to be strengthened by the signing of the Regional Comprehensive Economic Partnership (RCEP).

Craig Martin, director of Vietnam Holding Fund, believes that with an open economy such as the country’s, the signing of trade agreements, including RCEP, can serve to further highlight the ongoing Vietnamese growth story.