It could be double months since the final known circumstance of public coronavirus transmission throughout our nation. Stimulating Vietnam to hail among the leading performers within emerging economies. When recurrence keeps the rest threat, our country’s government switches its attention to fixing the broken economy.
1. Some primary factors that make Vietnam shine during COVID-19
1.1 Keeping afloat around 2020
The national spending can be a critical engine of our nation’s development based on the quickly growing middle class. In this circumstance, it is accounting for 70% of GDP. Even under pressure from dropping demand, nearly 70% of Vietnam’s surveyed around April 2020 claimed their revenue might be disrupted with COVID-19.
Our national suspension of non-vital activities took 23 days – particularly shorter than other nations, lessening most of the downward pressure related to consumption. Next, it is considered how long the national consumption might make the economy afloat within the return’s absence in various critical zones of this policy economy.
However, the nearby glance at Vietnam’s spending features can offer other reasons for tenacity. The key reason for optimism can reflect in spending for vital goods. This takes into account 45% of domestic GDP rather than 27% of discretionary spending.
The Vietnamese government's focus on attracting foreign investment has been a key factor in its economic resilience during the Covid-19 pandemic. Despite the pandemic, Vietnam has remained a top destination for foreign investment, attracting $15.67 billion in the first half of 2020. This investment has helped to boost the country's manufacturing and export sectors, which have remained relatively strong during the pandemic.
In addition to foreign investment, Vietnam's domestic consumption has also been a critical engine of its economic growth. Nearly 70% of Vietnamese businesses surveyed in April 2020 reported disrupted revenue due to Covid-19. However, spending on vital goods still accounts for up to 45% of domestic GDP. This, coupled with the government's proactive response to the pandemic and increased investment in digitalization and automation, bodes well for Vietnam's future economic prospects.
1.2 Investment Attraction
Besides domestic consumption, Vietnam’s attraction to foreign investment is proving to be a key factor in its economic resilience during COVID-19. The country has consistently been ranked among the top destinations for foreign investment in recent years. And this trend has continued despite the pandemic. In the first half of 2020, Vietnam attracted $15.67 billion in foreign investment. There was only a slight decrease from the same period in 2019. This investment has helped to boost the country's manufacturing and export sectors, which have remained relatively strong during the pandemic.
The government's efforts to improve infrastructure have also contributed to Vietnam's attractiveness to foreign investors. The country's strategic location and competitive labor costs have made it an increasingly popular destination for manufacturers looking to diversify their supply chains. As a result, Vietnam has become a major hub for electronics, textiles, and other export-oriented industries. With continued investment in infrastructure and technology, Vietnam is well-positioned to continue attracting foreign investment and driving economic growth in the years to come.
1.3 Government Actions
The Vietnamese government's quick and effective response to the pandemic has played a significant role in the country's economic resilience. The government acted quickly and decisively by implementing strict measures to control the spread of the virus. For example, the early travel restrictions, mandatory quarantine measures, and widespread testing and contact tracing. These efforts have helped to keep the number of cases and deaths relatively low in Vietnam, which has in turn allowed the economy to continue functioning with relatively few disruptions.
The government has also implemented a number of economic stimulus measures to help support businesses and individuals affected by the pandemic, including tax breaks and low-interest loans. The aim of these measures is to bolster the economy and help businesses stay afloat during these challenging times.
Furthermore, the Vietnamese government has been proactive in securing personal protective equipment (PPE) and medical supplies for healthcare workers and the general public. This has helped to prevent shortages of essential items and ensure that the healthcare system is adequately equipped to handle the pandemic.
Overall, the Vietnamese government's response and effective measures have played a crucial role in the country's economic resilience during COVID-19. These actions have helped to maintain stability and confidence in the economy, which has been crucial in attracting foreign investment and keeping domestic consumption afloat.
1.4 Our country can even be reliant on the global economy to improve its development trajectory.
National consumption alone can not likely be back to Vietnam to somewhere close to the pre-COVID-19 development trajectory. The short overview is particularly tied to the world economy’s performance to begin again, or for the global consumption’s rest to be back.
Some foreign firms hope that to start occurring later in 2020, or to boost up the following year. The World Bank, or IMF can release some predictions around the first quarter, forecasting our national GDP growth to get between 6.7 and 7.0% in the next year.
Vietnam’s success in mitigating the impact of Covid-19 and maintaining growth can be attributed to its response to the pandemic. The government's measures to contain the virus allowed for a quicker reopening of the economy, while increased investment in digitalization and automation has boosted productivity. Additionally, Vietnam's reliance on exports has played a role in its economic resilience, as global demand for its products has remained strong.
2.The positive prospects for producers once need returns.
2.1 Effective Immediate Action
Producing could be an important aspect of our national growth, bringing Vietnam to accomplish among the greatest trade-over-GDP rates around ASEAN. The COVID-19 affects so hard. Firstly, via supply disruptions, during China moving into lockdown, or then from plummeting needs like the primary export market stalled. With the availability of exports dropping, and the short-term recovery’s prospects seeming unstable, some organizations started putting strategic investments on the back burner, accounting for around 22% falling within international-direct-investment commitments for the initial three months throughout the next year.
However, there are other stimulating bright spots on the horizon. The producing sector’s vitality to our country’s economy is dynamic, and the primary steps might be brought to make some operations run due to the lockdowns with various nations.
The Vietnamese government even worked with local businesses to implement the private protective equipment’s amount for vital employees, assisting them to boost access to world markets.
Since the producers throughout the world can begin to suppose their supply chain campaigns again to handle the frailties shown from the COVID-19 pandemic, our country turns into a sustainable position.
2.2 Supportive Policy for Businesses
Vietnam's success in mitigating the impact of the Covid-19 pandemic and maintaining economic growth is truly commendable. The government's proactive response to the pandemic has been instrumental in enabling a quicker reopening of the economy. Additionally, the increased investment in digitalization and automation has boosted productivity, making the country more resilient to future disruptions.
Furthermore, Vietnam's reliance on exports has played a critical role in its economic resilience. Despite the pandemic's impact on the global economy, demand for Vietnamese products has remained strong. This has helped the country maintain a steady flow of revenue, providing a much-needed boost to businesses in the hospitality and tourism industries, as well as the overall economy.
The Vietnamese government's focus on developing domestic tourism has also been a significant contributor to its economic success. With international travel restricted, Vietnamese citizens have turned to exploring their own country, leading to a surge in domestic tourism. This has not only helped to stimulate the economy but has also helped to promote the country's unique culture and heritage.
Looking ahead, Vietnam's economy is well-positioned to continue growing and diversifying. The country's young and tech-savvy population has helped to drive innovation and entrepreneurship. In the meanwhile, the government's efforts to attract foreign investment and improve infrastructure have created opportunities in sectors such as technology, manufacturing, and renewable energy.
In conclusion, Vietnam's success in maintaining economic growth during the Covid-19 pandemic is a testament to its government's proactive and effective response. The country's resilience, innovation, and focus on sustainable development bode well for its future economic prospects.
Here are all the main factors that make our nation like a country that has green GDP throughout the pandemic. Once again, we are so proud of what our nation achieved this year.
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