VN sees more V-Shaped recovery in ASEAN

The only ASEAN-6 economy that escapes recession is Viet Nam.

Viet Nam boasts more faster-than-expected “V” recovery in ASEAN compared to the rest of the region, reported The Business Times (BT) in reference to a report by Maybank Kim Eng.

Maybank’s economists attributed the “V” recoveries to generous government subsidies, low-interest rates, high household savings rate and work-from-home policies.

The only ASEAN-6 economy that escaped recession is Viet Nam, as the country’s manufacturing purchasing managers’ index has risen significantly quicker and stronger than its ASEAN neighbors, the article highlights. 

Exports and retail sales saw a brief contraction, and have since normalized. The strong pick-up in domestic business and transport activities resulted in a “V” recovery in freight transport.

ASEAN’s recovery is expected to broaden in 2021, when a vaccine becomes available, according to the report.

By Thuy Dung