According to Vietnam Briefing, while Vietnam is still enduring the economic disruptions caused by the Covid-19 pandemic, it has enough pull factors to persuade investors to continue their business operations and relocate their industrial activities to the nation.
Vietnam has proposed a plan to gradually reopen the economy while maintaining pandemic protective measures in accordance with health guidelines. Specifically, about two-thirds of companies in Ho Chi Minh City (HCMC) have restarted their operations, while the rate at the city’s High-Tech park is 74%. Intel and Samsung are aiming to reopen their manufacturing in HCMC before the end of 2021, which should help to alleviate supply chain disruptions.
The Economist Intelligence Unit (EIU) has predicted that the country’s economy would rebound quickly in 2022 once most coronavirus-related restrictions were lifted in late 2021. Export-oriented manufacturing will continue to be the most critical driver of economic growth.
Despite the effects of Covid-19, foreign direct investment (FDI) inflows into Vietnam increased 4.4% year on year, reaching USD 22.15 billion in the first nine months of 2021, according to an announcement by the Foreign Investment Agency. For the first eight months of 2021, the FDI sector’s overall imports-exports value increased by 31.2% to USD 297.43 billion, with exports accounting for USD 156.64 billion.
(Sources: VietnamPlus; Vietnam Briefing)