COVID-19 could not stop Vietnam's economy: The Economist
Integration with global manufacturing has helped keep Vietnam’s economy humming during the pandemic, according to an article published on news site The Economist on August 30.
Hanoi (VNA) – Integration with globalmanufacturing has helped keep Vietnam’s economy humming during the pandemic, according to an article published on news site The Economist on August 30.
The article wrote that, having impressed the world by taming thevirus last year, Vietnam is now in the middle of its worst outbreak of COVID-19by far. Parts of the country are in strict lockdown and a swathe of factories,from those making shoes for Nike to those producing smartphones for Samsung,have either slowed or shut down, disrupting global supply chains.
In 2020, Vietnam’s GDP rose by 2.9 percent even as mostcountries recorded deep recessions. Despite the latest outbreak, this yearcould see faster growth: the World Bank’s latest forecasts, published on August24, expect an expansion of 4.8 percent in 2021.
The author said such performance hints at the real reason tobe impressed by Vietnam. The nation’s openness to trade and investment has madeit an important link in supply chains. And that in turn has powered aremarkable and lengthy expansion. Vietnam has been one of the fivefastest-growing countries in the world over the past 30 years. Its record hasbeen characterised not by the fits and starts of many other frontier markets,but by steady growth. The government is even more ambitious, wanting Vietnam tobecome a high-income country by 2045, a task that requires growing at 7 percenta year.
The article said Vietnam’s deep connection to global supplychains and high levels of foreign investment makes it seem more like Singapore.Since 1990, Vietnam has received average foreign direct investment inflowsworth 6 percent of GDP each year, more than twice the global level.
As the rest of East Asia developed and wages there rose,global manufacturers were lured by Vietnam’s low labour costs and stableexchange rate. That fuelled an export boom. In the past decade, exports bydomestic firms have risen by 137 percent, while those by foreign-investedcompanies have surged by 422 percent.
The author concluded that the setback from COVID-19 aside,it might seem hard not to be rosy about a country that appears to be in theearly stages of emulating an East Asian economic miracle./.
Economic experts have emphasised the need to have a new impetus to improve economic growth in the remaining months of 2021 towards realising the growth target for the year set by the Government and the National Assembly.
World Bank (WB) Lead Economist and Programme Leader for Vietnam Jaques Morriset has pointed out solutions to turn the Southeast Asian nation into a digital powerhouse.
As the market is witnessing adjustments in the rate of ownership for foreign investors in banks, analysts say that it depends on the strategy and business plan of each bank from time to time.
Vietnam is likely to remain foreign investors’ favoured destination despite the COVID-19 resurgence ravaging across the country, The Australia Financial Review (ARF) said in a story published earlier this week.
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Thailand’s Ministry of Commerce and rice exporters are devising strategic plans to boost rice exports amid global market fluctuations, focusing on key markets and adjusting output.
The focus of the upcoming ASEAN Summit in October will be on strengthening economic relations through intra-regional trade and investment, as well as regional initiatives on energy networks and connectivity.
Indonesian Ambassador Rina P. Soemarno, who currently serves as Chair of the ASEAN Committee in Prague, emphasised the spirit of regional solidarity and cooperation, and the importance of enhancing ASEAN–Czech Republic relations.
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Vietnamese Ambassador to Israel Ly Duc Trung emphasised ASEAN’s central role in regional mechanisms such as the ASEAN Regional Forum (ARF) and the East Asia Summit (EAS), highlighting its significant contribution to promoting peace, stability, and prosperity in Southeast Asia.
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Deputy Speaker of the Hungarian National Assembly Istvan Jakab expressed his hope for further deepening Hungary’s ties with ASEAN countries and called for their support for Hungary’s accession to the Treaty of Amity and Cooperation in Southeast Asia.
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Indonesia’s waste generation is projected to exceed 50 million tonnes in 2025. Of the total, more than 20 million tonnes could potentially enter the ocean through rivers, coastal areas, small islands, ports, and marine activities, and thereby, pose a risk to coastal ecosystems and marine biota.
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The facility was established in response to a growing shift in the Filipino labour force from the Middle East to Japan, where workers are seeking safer working environments.
In the latest Indonesia-US trade agreement in July, the US administration agreed to reduce the reciprocal tariff, which was initially set at 32% by US President Donald Trump last April, to 19%.
Real estate agency ERA Singapore estimated that there are 2,703 condo developments in Singapore today, of which 836 or 31% are at least 30 years old. In 10 years, this number is expected to climb to 1,160, assuming none is sold en bloc.
The new framework is designed to ensure that incoming investments deliver tangible national benefits, such as the creation of high-quality jobs for Malaysians and the development of local company ecosystems and technologies.
Singapore led with a total of 8.8 billion USD in realised investment, followed by Hong Kong and mainland China, Malaysia, and Japan with 8 billion USD, 1.7 billion USD and 1.6 billion USD, respectively.
Thai Acting Prime Minister Phumtham Wechayachai on August 7 outlined his strategy for tackling drug problems in Thailand, aiming for a "Zero Drugs Thailand" within three months.
The US has described Malaysia's role as Chair of the Association of Southeast Asian Nations (ASEAN) as vital in helping ease tension between Thailand and Cambodia.
Illustrative photo (Source: VNA) 
