Vietnam: a quick-response country

Although he reported his first case of COVID-19 on January 23, 2020, Vietnam reported just over 300 cases and zero deaths in the following four months.This initial success is attributable to several key factors, including a well-developed public healthcare system, a strong central government, and a proactive containment strategy based on comprehensive testing, tracing, and quarantine. Regarding its response to the Coronavirus epidemic, Vietnam was among the first countries to close its borders and halt international flights.. It has also invested in contact tracing, virus testing, quarantining suspected and confirmed cases, and has effectively mobilized state agencies, thereby lifting the lockdown as early as April 22. On the economic front, Vietnam fared better than many nations, but it was not entirely spared. In 2020, the pandemic restricted travel, brought the manufacturing sector to a standstill, and caused widespread unemployment due to significant losses suffered by companies around the world. Data shows that the country’s GDP grew by 1.81% in the first half of the year compared to a pre-COVID projection of 6.81%. This figure is particularly noteworthy when compared to that of all ASEAN countries: Vietnam is the fastest-growing economy in the region. 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 2.11% year-on-year in August, compared with 4.01% in July. Exports continued to perform well despite adverse international headwinds, while FDI (Foreign Direct Investment) inflows slowed significantly. The World Bank also suggests paying attention to domestic and foreign investors, who may postpone their plans in the current climate of uncertainty, as well as to the government’s response, which must 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 rely fully on its traditional growth drivers (private consumption and foreign demand). Given the uncertainties in the domestic and international environment, households—traditionally risk-averse—will in all likelihood scale back their investment and consumption plans, while exporters will continue to suffer from restrictions on international mobility and the decline in global income. Thehe tourism sector, for example, stands to lose 20 million foreign travelers in 2020 alone. Alessandro Fichera, Sole Administrator of Octagona, spoke about the current Vietnamese situation in an article for ISPI. Click here to learn more: “Vietnam: a quick-response country“.   ALSO READ: Webinar “Export 2021: New Internationalization Paths: 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