Although he reported
his first case of COVID-19 on January 23, 2020, Vietnam reported.
only a little more than 300 cases and zero deaths in the following four months. This early success can be attributed to several key factors, including a well-developed public health system, a strong central government, and a proactive containment strategy based on comprehensive testing, tracking, and quarantine.
As for its response to the Coronavirus outbreak,
Vietnam was among the first countries to close its borders and stop international flights. It has also invested in tracking the infected, testing for the virus, quarantining suspected and confirmed cases, and effectively mobilized state agencies thereby reaching the point of lifting the blockade as early as April 22.
On the economic side, the
Vietnam has fared better than many nations, but it was not completely spared. In 2020, the pandemic restricted travel, halted the manufacturing structure, and caused large-scale unemployment a because of the significant losses incurred by businesses around the world. Data show that the country's GDP grew by 1.81% in the first half of the year compared to a pre-COVID projection of 6.8%. This figure when compared to that of all ASEAN countries is particularly interesting, with Vietnam growing the most in the area.
The domestic economy grew in August, but at a slower pace than in July and significantly lower than the rates recorded a year ago. Industrial production (ANS) grew by 2.1% year-on-year in August, up from 4.0% in July. Exports continued to perform well despite international headwinds, while FDI (Foreign Direct Investment) inflows slowed significantly. The World Bank then suggests paying attention to domestic and foreign investors, who may postpone their plans in the current uncertain environment, as well as to the government's response, which needs to stimulate recovery in the short term and preserve fiscal and debt sustainability in the long term.
In the immediate future, the Vietnamese economy will not be able to fully rely on its traditional growth engines (private consumption and foreign demand). Given the uncertainties in the domestic and international environment, traditionally risk-averse households will most likely limit their investment and consumption plans, while exporters will continue to suffer from restrictions on international mobility and declining global incomes. I
he tourism sector, for example, stands to lose 20 million foreign travelers in 2020 alone.
Alessandro Fichera, CEO of Octagona, spoke about the current Vietnamese situation in an article for ISPI. Click here to read more: “
Vietnam: a quick-response country“.
ALSO READ:
Webinar “Export 2021: New Pathways to Internationalization: The Vietnam Case”
Vietnam: the new expanding manufacturing hub and the free trade agreement with the EU
Do you want to do business in Vietnam? Octagona tells you how to do it in the workshop organized by Minding
Business opportunities in Southeast Asia: executive course on Singapore, Indonesia and Vietnam
