Manufacturing Helping to Weather the Pandemic Crisis
Despite receiving a heavy toll caused by the health crisis, the Vietnamese economy is expected to keep its highest economic growth in Asia this year thanks in part to its surging manufacturing industry led by foreign direct investment driving exports.
Foreign direct investment inflows to Vietnam remain stable, despite the impacts of Covid-19. Quang Ninh and other northern provinces receive increasing investment interest from investors:
Samsung director Choi Joo Ho has an intention of investing in a project in Quang Ninh.
South Korea’s GS Engineering & Construction is planning to expand investment to the northern region and seeking investment opportunities in some projects relating to environmental protection and waste water treatment in Quang Ninh.
Over the past few months, Quang Ninh has received a number of other big investors from South Korea and Japan who want to cultivate investment projects in Vietnam following their gradual shifts of investment from China.
Vietnam economy records the highest growth in Asia in 2020 because of the effective containment of the pandemic, according to experts:
The panelists from Focus Economics expect GDP to expand 2.7% in 2020, the highest in Asia, before soaring to 7.3% in 2021, and 6.8% in 2022.
Despite causing serious aftermath in Vietnam, the health crisis seems not to be able to prevent FDI inflows to Vietnam or hinder the development of the manufacturing industry in the country.
Stable FDI inflows and uptrend in manufacturing industry are 2 big drivers of Vietnam’s economic growth this year and beyond.
In the first 11 months of 2020, Vietnam attracted $26.43 billion FDIs, hitting $17.2 billion in the total disbursement sum. Also, Vietnam’s total export turnover hit $254.6 billion, up 5.3% on-year.
For FDI, it will continue remaining a structural growth driver as manufacturing gradually recovers in 2021. Vietnam’s participation in the recently concluded free trade agreements (FTAs) will further strengthen its position as an attractive production base.
In November 2020, economic recovery continued to firm up as the industrial production and retail sales expanded by 9.2% and 13.2% on-year, respectively - which are the highest since the outbreak of coronavirus in February.
Vietnam Prime Minister said at a meeting in November 2020 that the country’s economy is now gradually bouncing back, and highly valued by international organisations for its economic potential and great efforts in curbing the pandemic.
Despite COVID-19, Vietnam has an underlying strength of the industrial and export sectors remaining intact: Vietnam is an attractive low-cost base for manufacturing firms, including those looking to relocate from China due to the US-China trade spat, thanks to competitive labor cost and business-friendly government. With exclusive, favorable conditions for growth, Vietnam is a golden land offering plentiful promising business opportunities. Interested in investing in Vietnam? Let Broad Avenue be your partner in advising business opportunities and mapping out strategies to maximize your profits. Contact us today to not miss out any crucial information.