Covid-19 crisis leads to opportunity to expand markets

2020 is a special year for Vietnam because of the 4.0 industry revolution and Covid-19 outbreak.

There are three things Vietnam needs to focus on – institutional reform, transport infrastructure upgrading and the heightening of the role of the private sector, according to Tran Dinh Thien, former Head of the Vietnam Economics Institute.

Covid-19 crisis leads to opportunity to expand markets

Tran Dinh Thien, former director of the Vietnam Economics Institute



2020 is a special year for Vietnam because of the 4.0 industry revolution and Covid-19 outbreak.

The US-China trade war has weakened China’s economy. And the coronavirus outbreak has dealt another strong blow to the world's second largest economy.

China is a huge production base for the world, making up 30 percent of the world’s growth.

Thien, in an interview with Doanh Nhan Sai Gon newspaper, said the recovery of the Chinese economy will come sooner or later, depending not only on the time the epidemic ends.

He said Vietnam needs to have a reasonable strategy to cope with the epidemic to avoid falling into a new cycle of market dependence. The most important variable in Vietnam's foreign economy is the Chinese and Korean markets.

In addition to the economic recovery of China and South Korea, it is India which may be the factor behind the regional economy boom. As Vietnam wants to escape reliance on the Chinese market, it must not repeat the same mistake when becoming dependent on the Indian market.

The greatest advantage of Vietnam is the stable economic development. The foreign investment has been increasing, while the export has been growing rapidly with three large markets – the US, China and South Korea. Exports brought export turnover of $500 billion in 2019.
 

The greatest advantage of Vietnam is the stable economic development. The foreign investment has been increasing, while the export has been growing rapidly with three large markets – the US, China and South Korea. Exports brought export turnover of $500 billion in 2019.


However, the reliance on the markets is heavy. Vietnam imports input materials mostly from China and South Korea. Meanwhile, the US, the country with strictest requirements on import products, is Vietnam’s most valuable export market.

The same thing can be seen in the tourism sector. The number of foreign travelers to Vietnam in 2019 increased by 16 percent, while the Chinese and South Korean markets saw a growth rate of 19 percent.

Asked about the advantages of Vietnam’s economy and the solutions to overcome the difficulties caused by the epidemic, Thien said Vietnam can be proud of a relatively high GDP growth rate and low inflation rate.

Vietnam signed two next-generation FTAs (free trade agreement) – CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership) and EVFTA (EU-Vietnam FTA). The two FTAs, plus the FTAs it signed before, will increase investment and trade.

Kim Chi 

EVFTA paves way for European investors to contribute capital to Vietnam’s banks

EVFTA paves way for European investors to contribute capital to Vietnam’s banks

Within five years from the day the FTA takes effect, Vietnam pledges to consider European credit institutions’ proposals to allow them to hold up to 49 percent of shares in two Vietnamese joint stock banks.

Electronics, seafood and garment industries to benefit the most from EVFTA

Electronics, seafood and garment industries to benefit the most from EVFTA

Vietnam is the second country in Southeast Asia, following Singapore, that has signed an FTA with the EU.

 
 

Other News

.
Exporters advised to stay ready for orders from Europe
Exporters advised to stay ready for orders from Europe
BUSINESSicon  27/03/2020 

Vietnamese exporters have been advised to make preparations so as to stay ready for orders from Europe when the EU-Vietnam Free Trade Agreement (EVFTA) takes effect and the COVID-19 pandemic is stamped out.

COVID-19 shows pressing need for quicker digital transformation
COVID-19 shows pressing need for quicker digital transformation
BUSINESSicon  27/03/2020 

Minister of Information and Communications Nguyen Manh Hung has urged digital companies to develop platforms for online services as COVID-19 pandemic has sparked a pressing need for Vietnam to hasten digital transformation.

RoK banks expand presence in Southeast Asia
RoK banks expand presence in Southeast Asia
BUSINESSicon  27/03/2020 

Banks of the Republic of Korea (RoK) have strengthened their foothold in Southeast Asia by opening more branches in the rapidly-growing market, the Financial Supervisory Service (FSS) said.

Online sales rise sharply amid pandemic
Online sales rise sharply amid pandemic
BUSINESSicon  27/03/2020 

As Vietnamese are now favoring ‘contactless purchases’ in Covid-19, online sales have increased rapidly.

Are Vietnam’s securities cheap?
Are Vietnam’s securities cheap?
BUSINESSicon  27/03/2020 

The VN Index has decreased by 156 points, or 17.7 percent, since the beginning of March.

Securities service fees cut does help, but more drastic measures in need: experts
Securities service fees cut does help, but more drastic measures in need: experts
BUSINESSicon  26/03/2020 

The finance ministry’s recent cut and exemption of some securities service fees won't urgently help soothe investor nerves over the spread of the COVID-19 and more strong measures are needed to support businesses, analysts have said.

Banks slash fees for interbank fund transfers
Banks slash fees for interbank fund transfers
BUSINESSicon  26/03/2020 

Thirty-seven commercial banks have confirmed the reduction of fees for fast interbank fund transfers following the move of the National Payment Corporation of Vietnam (NAPAS) to halve the switching fees for local banks from Wednesday.

Foreign currency market eases following central bank’s intervention
Foreign currency market eases following central bank’s intervention
BUSINESSicon  26/03/2020 

The US dollar on Wednesday depreciated against the Vietnamese dong after the State Bank of Viet Nam (SBV) sold the greenback on the cheap to stabilise the local foreign exchange market.

Vietnamese currency more stable than other regional peers
Vietnamese currency more stable than other regional peers
BUSINESSicon  26/03/2020 

Though the unofficial value of the VND has now fallen about 3 percent against the USD, the rate is still a smaller depreciation than that seen by most of Vietnam’s regional peers and is expected to stabilise around that level.

VN garment-textile group to ask for permission to export anti-virus products
VN garment-textile group to ask for permission to export anti-virus products
BUSINESSicon  26/03/2020 

Vietnam National Garment and Textile Group (Vinatex) will ask for the Government’s permission to export anti-virus products as a measure to overcome difficulties caused by the novel coronavirus (COVID-19) pandemic.

COVID-19 affects Vietnam’s automotive industry
COVID-19 affects Vietnam’s automotive industry
BUSINESSicon  26/03/2020 

The spread of the COVID-19 pandemic in almost all countries and territories worldwide is likely to force automobile manufacturing and assembly firms in Vietnam to scale down operations and even close their factories.

COVID-19 brings more business to insurers
COVID-19 brings more business to insurers
BUSINESSicon  26/03/2020 

The COVID-19 pandemic has so far hurt many businesses in the country, except the insurance industry.

COVID-19 pandemic leaves Airbnb hosts thinking of the long-term
COVID-19 pandemic leaves Airbnb hosts thinking of the long-term
BUSINESSicon  26/03/2020 

There are many problems associated with COVID-19, but one major issue caused by the global pandemic is its virtual destruction of the travel industry.

Coronavirus: US Senate passes $2tn disaster aid bill
Coronavirus: US Senate passes $2tn disaster aid bill
BUSINESSicon  26/03/2020 

The largest government economic stimulus in US history is approved, despite a last-minute row.

Foreign currency market stabilised following central bank’s intervention
Foreign currency market stabilised following central bank’s intervention
BUSINESSicon  26/03/2020 

The US dollar on March 25 depreciated against the Vietnamese dong after the State Bank of Vietnam (SBV) sold the greenback on the cheap to stabilise the local foreign exchange market.

COVID-19, dimmed global outlook weigh on bond market
COVID-19, dimmed global outlook weigh on bond market
BUSINESSicon  26/03/2020 

The novel coronavirus (COVID-19) pandemic and deepening global economic uncertainty are putting great pressure on Viet Nam’s local currency bond...

How COVID-19 affects Vietnamese consumers’ FMCG spend and purchase behaviours
How COVID-19 affects Vietnamese consumers’ FMCG spend and purchase behaviours
BUSINESSicon  26/03/2020 

The COVID-19 outbreak has hit fast-moving consumer goods (FMCG) businesses but not all categories and retailers will suffer negative impacts,...

Wood product processors need to restructure production due to COVID-19
Wood product processors need to restructure production due to COVID-19
BUSINESSicon  26/03/2020 

Local wood processing enterprises need to continue reorganising their production and business activities to deal with difficulties during the novel coronavirus pandemic, according to the Ministry of Agriculture and Rural Development.

Ministry targets no drop in exports this year despite COVID-19
Ministry targets no drop in exports this year despite COVID-19
BUSINESSicon  26/03/2020 

The Ministry of Agriculture and Rural Development has targeted no drop in export value of agricultural products this year, even though the sector was hit hard by the novel coronavirus (COVID-19) pandemic from the beginning of this year.

BUSINESS NEWS HEADLINES MARCH 26
BUSINESS NEWS HEADLINES MARCH 26
BUSINESSicon  26/03/2020 

Commercial banks support COVID-19-hit businesses

 
 
 
Leave your comment on an article

OR QUICK LOGIN