Southeast Asia’s economic growth will rebound to 6.2 per cent in 2021 with Vietnam achieving 8 per cent growth, according to the latest economic outlook report from Oxford Economics commissioned by chartered accountancy body ICAEW.
Despite the impacts of Covid-19, Vietnam recorded growth of 3.82 percent in the first three months of 2020. Economic recovery plans are also being developed for after the pandemic.
Prime Minister Nguyen Xuan Phuc on Saturday issued a new set of guidelines on measures to keep the country clear of COVID-19 while its economy restarts after strict social distancing measures were relaxed.
The fact that nearly 35,000 enterprises have now withdrawn from the market three months after the COVID-19 outbreak first appeared in Vietnam reveals the huge impact it has had on business and production.
Though still positive, the Vietnamese business community has a more negative outlook for the year ahead.
Limited land and labor resources, increasing wages and a lack of local suppliers in Vietnam could make the cost/benefit equation less attractive for FD) firms in the foreseeable future, HSBC said in its latest Asia Frontier Insights report.
Ongoing assistance will see Vietnam's private sector truly become a driver of economic growth, stakeholders said.