Vietnam’s economic outlook among best in Asia

Ho Chi Minh City skyline at dusk

In stark contrast to Thailand, Vietnam has been named to be among the “brightest spots” in Asia despite challenges from the coronavirus pandemic as the country is expected to rebound quickly, an analyst of Swiss bank UBS told CNBC.

“Vietnam is suffering some pain from the impact of Covid-19, but the outlook for its economy is one of the brightest in the region,” said Edward Teather, ASEAN economist at UBS Research.

“Retail sales, imports and industrial production were all actually up on the year throughout the month of June, which is better than you can say for most economies in the region,” he said.

Many Asian economies contracted in the second quarter of 2020 compared to a year ago, but Vietnam’s gross domestic product grew slightly at an estimated 0.36 per cent.

For the whole year, Vietnam’s economic growth is seen slowing down to three or four per cent from an expansion of around seven per cent last year due to wider impacts of the coronavirus pandemic, a group of government economic advisors for the Vietnam government said on July 9, according to Reuters. Even though it is a slowdown, the remaining growth momentum is still remarkable given the global economic circumstances and compared to regional peers.

Export growth, more foreign direct investment from EU expected

“Going forward, Vietnam is well-positioned to continue taking global market share in terms of exports, so there are pretty bright prospects for the nation in a relative sense in the region,” Teather said.

The expectation is based on Vietnam developing as an alternative manufacturing hub for companies that want to shift production out of China due to tensions between Beijing and Washington that have resulted in rising tariffs.

The country’s free trade deal with the European Union, which was ratified last month, could further boost inflows of foreign direct investment, Teather noted, adding that government support may also benefit Vietnam’s economy, particularly in terms of credit growth.

Ho Chi Minh City skyline at dusk In stark contrast to Thailand, Vietnam has been named to be among the “brightest spots" in Asia despite challenges from the coronavirus pandemic as the country is expected to rebound quickly, an analyst of Swiss bank UBS told CNBC. “Vietnam is suffering some pain from the impact of Covid-19, but the outlook for its economy is one of the brightest in the region,” said Edward Teather, ASEAN economist at UBS Research. “Retail sales, imports and industrial production were all actually up on the year throughout the month of June, which is better than...

Ho Chi Minh City skyline at dusk

In stark contrast to Thailand, Vietnam has been named to be among the “brightest spots” in Asia despite challenges from the coronavirus pandemic as the country is expected to rebound quickly, an analyst of Swiss bank UBS told CNBC.

“Vietnam is suffering some pain from the impact of Covid-19, but the outlook for its economy is one of the brightest in the region,” said Edward Teather, ASEAN economist at UBS Research.

“Retail sales, imports and industrial production were all actually up on the year throughout the month of June, which is better than you can say for most economies in the region,” he said.

Many Asian economies contracted in the second quarter of 2020 compared to a year ago, but Vietnam’s gross domestic product grew slightly at an estimated 0.36 per cent.

For the whole year, Vietnam’s economic growth is seen slowing down to three or four per cent from an expansion of around seven per cent last year due to wider impacts of the coronavirus pandemic, a group of government economic advisors for the Vietnam government said on July 9, according to Reuters. Even though it is a slowdown, the remaining growth momentum is still remarkable given the global economic circumstances and compared to regional peers.

Export growth, more foreign direct investment from EU expected

“Going forward, Vietnam is well-positioned to continue taking global market share in terms of exports, so there are pretty bright prospects for the nation in a relative sense in the region,” Teather said.

The expectation is based on Vietnam developing as an alternative manufacturing hub for companies that want to shift production out of China due to tensions between Beijing and Washington that have resulted in rising tariffs.

The country’s free trade deal with the European Union, which was ratified last month, could further boost inflows of foreign direct investment, Teather noted, adding that government support may also benefit Vietnam’s economy, particularly in terms of credit growth.

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