Vietnam's economy could take a few positives out of the pandemic and stay competitive in the long run.
Vietnam is becoming more attractive during the current global pandemic climate, and therefore, its economic outlook is positive in long term.
|The manufacturing sector remains a key component of Vietnam’s economy. Photo: The Hanoi Times|
Dau Anh Tuan, director of the Legal Department under the Vietnam Chamber of Commerce and Industry (VCCI), gave his view in a conference held on July 29 on the Vietnamese economy prospects in the final months of 2021.
"The pandemic makes many multinationals realize that they should not focus on a certain country, sector or location as an outbreak would disrupt the entire production chain," Tuan said.
Tuan expected there would be a global shift in investment from one country to another, in which Vietnam would emerge as an attractive destination as it has been a part of a series of free trade agreements (FTAs).
Another factor taken from the pandemic is that it has accelerated the digital transformation process in Vietnam, seen as key for Vietnamese firms to soon catch up with their international peers, Tuan said.
"Vietnam has taken a huge step in digitalization. The local business community with the majority being new, small, and medium-size so they could adopt new technologies easily," he added.
According to Tuan, the current pandemic has also changed the view of local enterprises on the issue of corporate governance and is expected to compel them to improve efficiency in this regard.
"There could be another natural disaster or pandemic in the future, so higher capability in governance would help them better adapt to risks," Tuan stated.
Outbreak control key for recovery
On measures to support businesses, Tuan said the majority of government's aid packages were provided so far on the assumption that the pandemic would end around the second quarter, without contemplating the fourth outbreak as like the current one. Thus, more are expected to come, he stated.
"The pandemic is causing unprecedented difficulties, so supporting packages should also have to be unprecedented," Tuan suggested.
The government has already mapped out mid-and long-term solutions for economic recovery, but how enterprises could survive until this point is another story, Tuan continued.
"Measures such as vaccine passport should be considered to support enterprises in the immediate future," he argued.
Tuan stressed the pace of the vaccination program, its fairness, and transparency is the issue that the government should focus on, as he said private firms have not been able to access vaccines as much as state firms at the moment.
Based on the economic performance in the first six months and uncertainties ahead, economist Can Van Luc said the economy could reach a GDP growth of 5.3-5.5% this year, which is much lower than the target set by the National Assembly at 6%.
"There is no way but to soon control the pandemic and speed up the vaccination program," Luc said.
Luc also expressed concern about the risk of price bubbles with the recent overheating real estate and stock markets.
"From now on until year-end, the global economic recovery would continue to support Vietnam's exports. On the domestic front, greater efficiency in the vaccination program in the third quarter would be essential for the economy to recover in the fourth," he concluded.
- Japan External Trade Organization (JETRO) participates in one of the largest innovation events in Asia to address social challenges in ASEAN
- Saving the Net from the surveillance state: Glenn Greenwald speaks up (Q&A)
- ASVDA Startup Ecosystem Forum at InnoVEX 2019 to Create a New stage for Innovation, Entrepreneurship and International Connections
- Alibaba powers ahead in retail as Amazon plays catch up
- Lenovo A7000 available in Asean only via e-commerce website Lazada
- Men's incomes have declined 28% since 1968: study
- Bangkok: a city with serious social media potential
- Art Won't Improve Because of Trump
- Confessions Of A US Navy EA-18G Growler Electronic Warfare Officer
- Getting the IT education you need without the debt: Could studying abroad be the answer?
- SAS drives growth strategy in Brazil
- India to be the world's largest economy by 2050
- China's IT manufacturing hub status safe
- Special report: Data center & cloud
- Tweet overload
- Killer Dust: Why Is Asbestos Still Killing People?
- Real Cold Weather Tips for Real Cold Women
Vietnam becomes more attractive in long-term have 719 words, post on hanoitimes.vn at July 31, 2021. This is cached page on Talk Vietnam. If you want remove this page, please contact us.