Vietnam could resume pre-COVID-19 growth levels by next year: McKinsey & Company
Vietnam could resume pre-COVID-19 growth levels by next year although the pandemic threw a spanner in the works for the country’s thriving economic growth story, McKinsey & Company said in report published on Consultancy.asia.
Hanoi (VNA) – Vietnam could resumepre-COVID-19 growth levels by next year although the pandemic threw a spannerin the works for the country’s thriving economic growth story, McKinsey &Company said in report published on Consultancy.asia.
According to the firm, two factors have combinedto cushion the blow of COVID-19 on Vietnam’s economy. For one, the country wassuccessful in containing the virus. In fact,reports highlight that the last report of community transmission of Covid-19 inVietnam was two months ago.
Lockdown in Vietnam lasted only three weeks,and the country has been among the first to open for business, it said.
The second conducive factor is the state ofVietnam’s consumer market, the firm said, adding that a growing middle classwith money to spend has led to a boom in the country’s consumer market, to theextent that domestic spending accounts for nearly 70 percent of Vietnam’s GDP.
Back in April, more than half of Vietnameseconsumers had reported a dip in spending, according to a McKinsey & Companyreport. GDP growth dipped to a decade-low in this quarter. However, the biggestcuts came in the discretionary spending segment, which fortunately accounts forjust over a quarter of the GDP.
More than 40 percent of Vietnam’s GDP,meanwhile, is driven by spending on necessities, which has remained robustthroughout the crisis and is expected to remain steady in its wake.
Both these factors mean that steadying theship is relatively less of a challenge for Vietnam in the context when supply chains across the globe were thrown off balanceby the lockdown, and Vietnam’s export numbers were affected by closures inChina and other key markets, leading to a 21 percent dip in FDI for Vietnam inthe first three months this year.
Forecasts suggest that most economies shouldbe up and running by the end of this year, while a degree of momentum shouldaccumulate by the middle of 2021. Provided that there is no second wave ofinfections, Vietnam could be up and running by this period. In fact, the AsianDevelopment Bank, the World Bank and the International Monetary Fund allpredict that Vietnam could reach a GDP growth rate of up to 7 percent by nextyear, the firm said./.
Vietnam’s gross domestic product (GDP) is forecast to expand 7 percent during 2021-2025 on the back of new-generation free trade agreements, according to the Ministry of Planning and Investment’s National Centre for Socio-Economic Information and Forecast (NCEIF).
The Vietnam Report JSC and VietNamNet newspaper announced the top 500 largest enterprises in Vietnam (VNR500) in 2019 at a ceremony in Hanoi on January 9.
Vietnam has been hit hard by the current novel coronavirus pandemic (COVID-19), but it will show signs of recovery in the post-coronavirus period, the World Bank said in its Vietnam Macro Monitoring report for May.
Vietnamese Ambassador to Cambodia Nguyen Minh Vu led a delegation to Mondulkiri, Ratanakiri, and Kratie provinces from August 5-8, aiming to deepen economic ties and support Vietnamese businesses operating in Cambodia’s northeastern region.
Party General Secretary To Lam’s upcoming state visit to the Republic of Korea (RoK) is expected to mark a new milestone in the bilateral relationship, creating fresh momentum for trade and investment cooperation between the two countries.
In the context of the growing global digital economy, digital transformation and the promotion of e-commerce are key drivers helping Vietnam boost integration, enhance competitiveness, and expand export markets, according to the Vietnam E-commerce and Digital Economy Agency
Tilapia is considered highly competitive in export markets thanks to its affordability, ease of processing, and appeal across both high-end and mass-market segments.
In the first seven months of the year, Phu Tho attracted an impressive 651.7 million USD in foreign direct investment, including 35 newly licensed projects totaling 119 million USD in registered capital and 45 existing projects with an additional capital of 533 million USD.
Under the agreements, VinEnergo will invest in, install, and operate 43 MWp of rooftop solar power capacity and 45 MWh of BESS capacity across the three plants.
Under a draft to amend and supplement the Government's Decree 125/2020/ND-CP on administrative sanctions for violations of tax and invoice regulations, the Ministry of Finance has proposed classifying the failure to issue invoices into five different levels. Infraction levels will correspond to fines of 1 million VND to 80 million VND, depending on the nature and number of invoicing violations.
A new airline developed and invested by Sun Group — has officially announced a strategic partnership with Amadeus IT Group (Amadeus), one of the world’s leading travel technology companies. This agreement not only lays the foundation for a modern digital infrastructure but also marks a pivotal step in SPA’s global expansion strategy, enabling the airline to access international distribution networks and reach customers worldwide.
Of the total, 107,700 were new firms, with combined registered capital of 928.4 trillion VND (35.4 billion USD), up 10.6% in number and 5.5% in capital compared with the same period last year.
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Viettel was ranked third for overall mobile performance with a score of 82.56 just behind UEA’s e& (88.05) and Quatar’s Ooredoo (87.05) and ahead of Singapore’s Singtel (82.53). Vinaphone took second in 5G speed with a score of 78.11, trailing only behind e&.
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