According to the Asian Development Bank (ADB), the world’s economy is facing three headwinds, including China’s decision to require lockdown because of Covid-19; central banks tightening monetary policy to fight inflation; and the conflict between Russia and Ukraine. 

China reopening the economy and some Asian countries regulating monetary policy with a lighter hand can be seen as positive factors to help the recovery of many regional economies.

China began loosening anti-epidemic measures in early December 2022. The second largest economy in the world is planning to fully reopen by Q2 2023. This is positive information for the world because goods and service trade between China and other countries was $7 trillion in 2021.

The enterprises which export products to China in large quantities will benefit.

Vu Manh Hung, an expert from VnDirect Securities, said that shares to benefit from China’s economic reopening will include aviation, seafood, cement, rubber, steel, textile and garment, retail and rice.

Meanwhile, some industries will bear negative impacts from this, including fertilizer production.

According to Savills Vietnam, many air carriers have announced resumption of air routes between China and Vietnam. This can be seen as a positive sign that helps accelerate the recovery of Vietnam’s leisure industry.

According to VinaCapital, China’s reopening will help stimulate Vietnam’s growth in 2023. China is Vietnam’s biggest trade partner and the biggest inbound tourism market for Vietnam.

Meanwhile, TPS Securities believes that China’s loosening will have positive influences on global trade and help restart interrupted supply chains.

However, the Chinese move may cause prices of goods to increase sharply. Economies in the world are still struggling with high inflation, including in Europe, Asia and the US.

Nevertheless, the impact that China’s opening will have on the world’s economy remains unclear and it is still unclear what Chinese policies will be like after the "zero-Covid" period.

Manh Ha