• An Giang
  • Binh Duong
  • Binh Phuoc
  • Binh Thuan
  • Binh Dinh
  • Bac Lieu
  • Bac Giang
  • Bac Kan
  • Bac Ninh
  • Ben Tre
  • Cao Bang
  • Ca Mau
  • Can Tho
  • Dien Bien
  • Da Nang
  • Da Lat
  • Dak Lak
  • Dak Nong
  • Dong Nai
  • Dong Thap
  • Gia Lai
  • Ha Noi
  • Ho Chi Minh
  • Ha Giang
  • Ha Nam
  • Ha Tinh
  • Hoa Binh
  • Hung Yen
  • Hai Duong
  • Hai Phong
  • Hau Giang
  • Khanh Hoa
  • Kien Giang
  • Kon Tum
  • Lai Chau
  • Long An
  • Lao Cai
  • Lam Dong
  • Lang Son
  • Nam Dinh
  • Nghe An
  • Ninh Binh
  • Ninh Thuan
  • Phu Tho
  • Phu Yen
  • Quang Binh
  • Quang Nam
  • Quang Ngai
  • Quang Ninh
  • Quang Tri
  • Soc Trang
  • Son La
  • Thanh Hoa
  • Thai Binh
  • Thai Nguyen
  • Thua Thien Hue
  • Tien Giang
  • Tra Vinh
  • Tuyen Quang
  • Tay Ninh
  • Vinh Long
  • Vinh Phuc
  • Vung Tau
  • Yen Bai

VN’s economy shows signs of better recovery in post COVID-19 phase

VGP - Viet Nam’s economy is showing signs of better recovery in the post COVID 19 phase, according to the article released by Prof. Pankaj Jha on moderndiplomacy.eu.

July 21, 2020 2:59 PM GMT+7

Viet Nam’s economy is showing signs of better recovery in the post COVID 19 phase, according to the article released by Prof. Pankaj Jha on moderndiplomacy.eu.

At the beginning, the article referred to Prime Minister Nguyen Xuan Phuc’s statement that the economy will grow at the rate of 4 to 5% this year, completely exceeding the predictions that have been made by the International Monetary Fund (IMF) in April 2020.

“This would mean that the acceleration that the economy has achieved after successfully defeating the COVID-19 virus is on its way to recover faster than many Asian economies in the region”, the article noted.

Referring the nations’ manufacturing and production process in the post-coronavirus period, the article said that: “Going by the resurgence in manufacturing, and the possible alternative to the Chinese exports in few niche markets, Viet Nam might be reaping the benefits of early recovery”.

Regarding two among largest trade partners of Viet Nam including the US and the EU, the article highlighted that: “In the second quarter, the economic development indicators are promising. As per the Bloomberg report, it is stated that Viet Nam has posted its trade surplus of US$500 million in June 2020 while it had suffered a trade deficit of US$ 900 million in May 2020.

The US market has also been showing signs of recovery, and the US-Viet Nam trade is expected to touch US$80 billion in coming years. This has happened because of bilateral trade agreement between US and Viet Nam signed in the year 2000.

Further, the FTA between Viet Nam and EU has facilitated better trade avenues for Viet Nam. It is expected that the EU Viet Nam trade agreement would facilitate tariff free entry of more than 71% of Vietnamese goods to Europe while more than 65% of European goods would get tariff free entry into Vietnamese market.

Viet Nam has been witnessing rise in foreign direct investment from European and the US companies because of improvement in legal aspects and better business facilitation environment”.

Pankaj Jha stressed Viet Nam’s advantages to soon recover economy in the post COVID-19 phase: “The relatively low labor cost in Viet Nam as well as the growth of small and medium enterprises (SMEs) would be beneficial for foreign direct investors to create an economic ecosystem which can provide employment to many. As already Viet Nam has one of the lowest unemployment rates in the Asian region.

In the year 2019 its unemployment rate was 2.2% of the total working population. Viet Nam is a highly literate nation and it is working hard to build a new education system to provide skilled workers and language experts to lure the foreign firms to invest in the country.

Better vocational training institutes, effective industry specific skill training centers and improvement in higher education has been the prime focus of Vietnamese political establishment which would bring about necessary changes required for promoting foreign direct investment in the country. One of the biggest achievements that the country has done in the last one decade has been perceptible decline in corruption across the country”. 

Prof. Pankaj Jha supposed that Viet Nam might reap the benefits of post COVID economic growth due to the swiftness of structural reforms and trade facilitating measures. The country can emerge as the perfect example for the global south.  

By Thuy Dung