Vietnams economic success

This comes as the country has successfully maintained consistent positive growth, just as other regional economies struggle to recover. Nikkei notes how Vietnamese real gross domestic product expanded by 2.6% on-year in the third quarter, marking a second consecutive quarter of growth amid the COVID-19 pandemic. According to the Japanese financial publication, the International Monetary Fund (IMF) anticipates that Vietnam will rise to fourth in nominal GDP in ASEAN this year, surpassing Singapore and Malaysia and rapidly gaining on the Philippines. “In contrast to other ASEAN economies, Vietnam has succeeded in keeping the virus under control. Rising exports have also helped to drive growth, as companies relocate production from China”, says the article. Most notably, annual exports recorded growth of 9.9% in October to US$26.7 billion, with the Ministry of Industry and Trade projecting a rise of 3% to 4% throughout the year. Nikkei indicates that while large vessels usually opt for other ports in the region, such as Singapore, Vietnam’s growing exports have boosted shipping demand enough to make it a worthwhile location for ships bound for Western countries. For example, late October saw an ultra-large container ship operated by Maersk dock at Cai Mep, the first time this has happened to southern Vietnam's largest port. “This allows for more direct transportation of Vietnamese goods to buyers, which lowers shipping costs, shortens transit time, and makes the country more competitive as an exporter”, the article notes. According to Nikkei, trade friction between the United States and China has served to boost Vietnamese trade, largely due to manufacturers relocating their factories away from China in an effort to avoid American tariffs. “Both multinational corporations and Chinese businesses have moved production to Vietnam to take advantage of its skilled, low-cost labour. Samsung Electronics, which has manufactured smartphones in the country for …

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HCM City eyes 10 percent growth in export in 2021 Shrimps processed for export Ho Chi Minh City’s Department of Industry and Trade has set the target to export 48.19 billion USD worth of products in 2021, a year-on-year surge of 10 percent. Under its development plan for 2021 recently submitted to the municipal People’s Committee, the sector said import revenue is estimated at 56.47 billion USD for the whole year, up 11 percent against the previous year. Besides, it eyed to reel in more than 835.68 trillion VND (36.29 billion USD) from retail sales and services revenues in the year, up 10 percent year-on-year. The department said it will carry out necessary measures in a comprehensive fashion to branch out industry and trade, contributing to promoting economic recovery of the southern hub. Earlier, HCM City set a goal of boosting the export of its key products this year and beyond via trade promotion activities and assistance to enterprises. Head of the statistics office Huynh Van Hung said COVID-19 has been largely brought under control around Vietnam, resulting in the production sector exhibiting signs of recovery. Local enterprises, however, continue to face difficulties as many major trading nations are yet to open their markets. He noted that enterprises are in need of diverse and long-term support relating to information on importers of materials and fuel, new markets and partners, and domestic consumption stimulus measures. According to Nguyen Phuong Dong, Director of the municipal Department of Industry and Trade, despite facing myriad challenges, last year the city still saw five goods post export turnover in excess of 1 billion USD: computers-electronic products and components, with 17.8 billion USD; garment-textile 4.3 billion USD; footwear 2.2 billion USD; machinery-equipment-spare parts 2.2 billion USD; and other goods 6.9 billion USD. Together their export value accounted for 83.5 percent of the city’s total. Key export …

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Cat Lai traffic junction connects HCM City with provinces in the Southeast region of Viet Nam and the Northern provinces. — Photo hanoimoi.com.vn Viet Nam is predicted to record positive growth this year, especially in the context of US-China trade tensions that may persist in the coming years. As a leading financial newspaper run by Japanese media giants Nikkei Inc, Nikkei Asia stated that: “Southeast Asia's growth leader in 2021 may well be Viet Nam,” during a recent article detailing ASEAN's GDP forecasts for the year ahead. According to Nikkei, the country recorded economic growth of 2.9 per cent last year due to its success in containing the novel coronavirus (COVID-19), in addition to robust exports of electronics and other consumer products, with the nation reportedly targeting a growth rate of 6.5 per cent this year. Gareth Leather, senior Asia economist at Capital Economics, said that Vietnamese exports should continue to be supported by tariffs imposed by the US on Chinese goods. He noted that: "To avoid US tariffs, importers have shifted demand from China to alternative suppliers. With US-China relations likely to remain strained over the years ahead, this trend is likely to continue." The newspaper also stressed that before the pandemic, Southeast Asia achieved collective annual growth of approximately 5 per cent over the course of many years, therefore making it one of the world's best-performing regions in economic terms. According to media reports, the region has become an attractive investment destination, with a relatively young population that drives demand and provides plenty of manufacturing labour. Although these factors can be viewed as advantages that can boost economic growth, the region’s top priority in the short term is to stamp out COVID-19. Previously, many Japanese and international newspapers made positive forecasts about Viet Nam's economic prospects. In the article entitled Overcoming the COVID-19 pandemic, Viet …

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