The Economist upbeats about Viet Nam’s economic prospect

Despite the latest COVID-19 outbreak, this year could see faster growth: the World Bank’s latest forecasts, published on August 24, expect an expansion of 4.8% in 2021.

Last year, Viet Nam’s GDP rose by 2.9% even as most countries recorded deep recessions.

Having impressed the world by taming the virus last year, Viet Nam is now in the middle of its worst outbreak of COVID-19 by far. Parts of the country are in strict lockdown and a swathe of factories, from those making shoes for Nike to those producing smartphones for Samsung, have either slowed or shut down, disrupting global supply chains.

The nation’s openness to trade and investment has made it an important link in supply chains. And that in turn has powered a remarkable and lengthy expansion.

Earlier, the Australia Financial Review (ARF) reported that Viet Nam is likely to remain foreign investors’ favored destination despite the COVID-19 resurgence ravaging across the country.

In a story published on late August, the ARF said that though rapidly rising Delta COVID-19 infections have hit manufacturing in Ho Chi Minh City, the big-picture story of Viet Nam being a favored destination for foreign investment is not expected to change.

Even as forecasts are trimmed, economists have faith the nation will bounce back./.

By Kim Loan