Vietnam: the rare economy that still grew during Covid-19 pandemic

Vietnam’s GDP grew by 2.12 percent in the first nine months of the year compared with the same period last year, the lowest growth rate since 2011, according to the General Statistics Offic.

The 2.12 percent growth rate came following the 3.68 percent rate in Q1, 0.39 percent in Q2, and 2.62 percent in Q3. This is the lowest 9-month growth rate in the 2011-2020 period.

Vietnam: the rare economy that still grew during Covid-19 pandemic

However, the low growth rate is still very encouraging in the context of Covid-19 which has seriously hit all economies globally.

What is noteworthy is that Vietnam obtained a growth rate of 2.62 percent in Q3. This shows that Covid-19 has been controlled in the country and the economy has entered the ‘new normal' period.

Agricultural production, forestry and seafood grew by 1.84 percent, making up 13.62 percent of total growth, while industry and construction grew by 3.08 percent, contributing 58.35 percent to the total growth rate. The figures were 1.37 percent and 28.03 percent for the service sector.

The low growth rate of the agricultural production, forestry and seafood sectors was attributed to drought and saline intrusion, Covid-19, and African swine fever (ASF).

The number of newly set up and restored businesses in the first nine months of 2020 reached 133,600, an increase of 2.9 percent over the same period last year.

A survey on the business trends of manufacturing and processing enterprises found that enterprises were optimistic about production and business in Q4, with 81 percent of enterprises believing that the situation will be better.

Around 99,000 businesses were registered in the first nine months of the year, while 38,600 suspended operations, an increase of 81.8 percent over the same period last year.

 

Around 27,600 businesses stopped operation, following procedures for dissolution, a decrease of 2.4 percent. Nearly 12,100 businesses completed procedures for dissolution, up by 0.1 percent. Meanwhile, 36,500 businesses were not found operating at their given addresses, up by 39.6 percent.

This survey also found that 32.2 percent of enterprises thought the situation in Q3 would be better than in Q2, while 31.9 percent said they would still face difficulties and 35.9 percent said that business would be stable.

More than 45 percent of businesses think the situation in Q4 will be better than Q3, 19 percent predict bigger difficulties, and 35.4 percent think the situation will be stable.

Despite challenges, many Vietnam enterprises are still ‘swimming against the current’, and continuing to implement their investment projects.

Hoa Phat Group is speeding up its project on a huge steel complex in Quang Ngai. Thanh Cong Group at the same time started construction of an automobile assembling factory No 2 in Ninh Binh and an automobile supporting industry complex in Quang Ninh. 

Tam An

Vietnam’s GDP to grow 2-3 percent this year: former GSO director

Vietnam’s GDP to grow 2-3 percent this year: former GSO director

Vietnam’s GDP growth this year can reach 2 – 3 percent, according to former director of the General Statistics Office (GSO) Nguyen Bich Lam.

Vietnam targets 6.5% GDP 2021 growth

Vietnam targets 6.5% GDP 2021 growth

The Ministry of Planning and Investment (MPI) has been asked to meet the goal of 6-6.5% GDP growth in 2021.

 
 

Other News

.
17th CAEXPO to benefit China-Vietnam cooperation
17th CAEXPO to benefit China-Vietnam cooperation
BUSINESSicon  23/11/2020 

China and Vietnam are friendly neighbors connected by mountains and rivers, and have achieved fruitful results in the sustained economic and trade cooperation. 

'Ghost' restaurants flourish in Ho Chi Minh City
'Ghost' restaurants flourish in Ho Chi Minh City
BUSINESSicon  23/11/2020 

Without tables, chairs or waiters, "ghost" restaurants are flourishing in Vietnam, serving only online customers.

Thousands of Mercedes-Benz recalled in Vietnam over defective airbags
Thousands of Mercedes-Benz recalled in Vietnam over defective airbags
BUSINESSicon  22/11/2020 

Some 3,200 Mercedes-Benz cars in Vietnam have been found to have problems with Takata airbags, according to the Vietnam Register.

Binh Dinh-based Phu Cat airport proposed to become international one
Binh Dinh-based Phu Cat airport proposed to become international one
BUSINESSicon  22/11/2020 

The Binh Dinh government has written to the Ministry of Transport and the Civil Aviation Authority of Vietnam proposing turning Phu Cat Airport into Phu Cat International Airport.

Vietnam, Oman to foster bilateral trade
Vietnam, Oman to foster bilateral trade
BUSINESSicon  22/11/2020 

The two-way trade turnover increased sharply from US$117 million in 2017 to US$200 million in 2019.

Ministry working to promote growth of support industries
Ministry working to promote growth of support industries
BUSINESSicon  22/11/2020 

The Ministry of Industry and Trade (MoIT) has introduced a range of measures to boost the growth of support industries in a bid to promote the engagement of local companies in production chains.

What does the 'rescue' of Vietnam Airlines reveal?
What does the 'rescue' of Vietnam Airlines reveal?
FEATUREicon  22/11/2020 

The national airline of Vietnam finally saw "the light at the end of the tunnel" when the National Assembly agreed with the Government's proposal for solutions to help Vietnam Airlines overcome difficulties caused by the Covid-19 pandemic.

Electronics industrial clusters to be piloted
Electronics industrial clusters to be piloted
BUSINESSicon  22/11/2020 

The Ministry of Planning and Investment has instructed localities to review and report on the development of industrial zones with investment projects in the electronics industry with a scale starting from US$20 million.

Real estate inventories see decline: ministry
Real estate inventories see decline: ministry
BUSINESSicon  22/11/2020 

Inventories in the real estate market have been on the decrease thanks to increasing liquidity, according to the Ministry of Construction (MoC).

Up to 16,000 foreigners buy housing in Vietnam in last five years
Up to 16,000 foreigners buy housing in Vietnam in last five years
BUSINESSicon  21/11/2020 

Between 14,000 and 16,000 foreigners have bought housing in Vietnam since July 2015, mostly from China, the Republic of Korea, Japan, Taiwan (China), and Singapore, the HCMC Real Estate Association (HoREA) estimates.

Global media positive about Vietnam’s growth despite COVID-19
Global media positive about Vietnam’s growth despite COVID-19
BUSINESSicon  21/11/2020 

A number of regional and global news agencies have quoted data from international research institutes and organisations as saying that Vietnam’s economy is on track to grow despite the impact of COVID-19.

Challenges and opportunities from Covid-19 for Vietnam's M&A market
Challenges and opportunities from Covid-19 for Vietnam's M&A market
BUSINESSicon  21/11/2020 

Low interest rates could open up new opportunities for investors to take advantage of the cheap capital to buy shares and acquire new assets via M&A deals.

Vietnam proves potential to profit from shifts in global supply chain
Vietnam proves potential to profit from shifts in global supply chain
BUSINESSicon  21/11/2020 

Years of economic growth and success in fighting Covid-19 paved the way for Vietnam to receive shifting FDI inflows, but limited participation in manufacturing industries might hinder its progress.

Vietnamese consumers increasingly embrace sustainability
Vietnamese consumers increasingly embrace sustainability
BUSINESSicon  21/11/2020 

Sustainability has been a growing topic of interest to Vietnamese consumers in recent years though awareness levels remain well below the global average.

VN corporate bond market cools for 2nd month
VN corporate bond market cools for 2nd month
BUSINESSicon  20/11/2020 

The value of corporate bonds issued in October was VND9.5 trillion (US$409 million), down 12.8 per cent from September, according to the Hanoi Stock Exchange (HNX).

Under FTAs, car imports will be subject to lower tariffs
Under FTAs, car imports will be subject to lower tariffs
FEATUREicon  21/11/2020 

The two important FTAs – CPTPP and EVFTA – all have strong commitments on tariff cuts, with the tariffs expected to be completely removed in 7-13 years.

VIETNAM BUSINESS NEWS HEADLINES NOVEMBER 22
VIETNAM BUSINESS NEWS HEADLINES NOVEMBER 22
BUSINESSicon  22/11/2020 

Automobile sales surge in October

Vietnam’s digital economy to reach $14 billion this year
Vietnam’s digital economy to reach $14 billion this year
BUSINESSicon  20/11/2020 

Vietnam’s digital economy is expected to reach 14 billion USD in 2020, a year-on-year increase of 16 percent, and will likely reach 52 billion USD in 2025, re-accelerating to nearly 29 percent in compound annual growth rate.

Japfa Comfeed Vietnam inaugurates 6th animal feed mill in Binh Dinh
Japfa Comfeed Vietnam inaugurates 6th animal feed mill in Binh Dinh
BUSINESSicon  20/11/2020 

Japfa Comfeed Vietnam Co., Ltd. on November 18 inaugurated its 16th feed mill in the Nhon Hoa Industrial Park in Binh Dinh Province. This modern factory will supply high-quality animal feed for potential markets in Vietnam’s central region.

Vietnamese chocolate products have chance to enter global market
Vietnamese chocolate products have chance to enter global market
BUSINESSicon  20/11/2020 

There is an opportunity for Vietnamese chocolate to become a niche player in the world market with a brand of unique flavoured cocoa, according to the Belgian ambassador to Vietnam.

 
 
 
Leave your comment on an article

OR QUICK LOGIN