Viet Nam's recovery prospect remains brightest in Southeast Asia

t’s been two months since the last known case of community transmission of the coronavirus in Vietnam, enabling the country, hailed recently as one of the 11 outperformers among emerging economies, to be among the first to fully reopen its domestic economy.

While recurrence remains an ever-present threat, Vietnam’s government is now turning its attention to repairing a damaged economy.

Vietnam has fared better economically than many countries, but it has not been completely spared.

With exports and tourism severely affected, domestic consumption has been (and is expected to continue to be) critical to hold the economy together.

Buoyed by a rapidly growing middle class and rising disposable income, domestic spending has long been a key engine of growth for Vietnam, accounting for 68 percent of GDP.

Although under pressure from falling demand—two-thirds of Vietnamese surveyed in April 2020 said their income had been disrupted by COVID-19, and 55 percent said they had cut back on spending—the “engine” has largely remained in gear.

Vietnam’s suspension of nonessential activities lasted only 22 days—significantly shorter than many other countries, easing some of the downward pressure on consumption.

A rebound in international tourism and labor-intensive manufacturing exports will be critical for this growth.

ietnam’s relatively virus-free status leaves it well positioned to receive an outsize share of international tourists, as long as it takes precautions to prevent a recurrence of the virus.

Manufacturing has been a crucial sector for Vietnam’s growth, leading Vietnam to achieve one of the highest trade-over-GDP ratios in Southeast Asia

there are some encouraging bright spots on the horizon. The manufacturing sector’s importance to Vietnam’s overall economy is clear, and so key steps have been taken to keep operations running despite lockdowns in other countries.

This year will no doubt continue to be a challenging one, but Vietnam could expect the strong growth of recent years to return next year, and it will likely see its position as an offshoring location reinforced once the global economy begins to recover.

If Vietnam can continue its enviable record of keeping community transmission of COVID-19 at bay while also making the right structural shifts to drive growth over the next decade, it could not only recapture its pre-COVID-19 economic position but drive new economic growth.

Vietnam is a friend, a reliable partner of all countries and an active and constructive member in the international community, striving for peace, cooperation and sustainable development, actively participating in regional and international cooperation.

Despite the strong adverse impacts of the COVID-19 pandemic, biletaral trade value rose nearly 10% in the first half of this year.

The year of 2020 is a very important for Vietnam’ foreign Affairs, especially in implementation of the multilateral diplomacy.

in the recent years, Vietnam has properly assessed the situation in the South China Sea, given prompt reactions and dealt with the situation strongly to defend the country’s legitimate rights and interests.

Vietnam has garnered international praise for its swift and effective response to the COVID-19 outbreak. Although the country is not immune to the global economic downturn, its prospects for recovery remain positive and are brightest among Asian countries.

Although disruptions to global supply chains caused by COVID-19 are weighing on Vietnam’exports, the country stands to benefit from companies looking to diversify their manufacturing base away from China.

Vietnam’s strong economic fundamentals should enable the country to rebound in 2021 if the pandemic is relatively under control in the nation and globally