Is Vietnam the Next “Asian Miracle”? 29th October 2020

Publication

October 29, 2020

Vietnam continues to show ever-evolving potential and resilience under the adversity of COVID-19 as it is one of the world’s most successful countries in containing COVID-19 in the early stage and reopening the economy that allows businesses to resume, which has brought confidence and international recognition. Companies around the world are shifting their supply chains to be less dependent on China and diversify their risk in the wake of the coronavirus crisis and US-China trade war. Numerous tech giants such as Apple, Google and Samsung have already shifted their manufacturing bases to Vietnam.

On the other hand, Vietnam is now sizzling hot with foreign capital running in as the EU-Vietnam Free Trade Agreement (EVFTA) has brought several opportunities for Vietnamese exporters. The government has a strong pipeline in township and infrastructure development such as the expansion of MRT and airports to attract foreign businesses. With the Vietnam government gradually resuming its international commercial flights, an impressive V-shaped rebound for the Vietnam economy is predicted. Vietnam is the only Southeast Asian region that records positive growth in GDP and the Ministry of Planning and Investment even forecasts a GDP growth of 2%-2.5% this year.

The following are some updated Vietnam News, relating to some general economic trends and great investment values of Vietnam!

Apple partner to invest US$1 billion for a manufacturing complex in Vietnam

Taiwan-based Pegatron, manufacturing partner of the world’s major tech firms such as Microsoft, Apple or Sony, has plans to invest US$1 billion to build a manufacturing complex at Nam Dinh Vu industrial park in the northern city of Hai Phong, according to a report from the Ministry of Planning and Investment (MPI).

Source: Vietnam Insider

Japanese medical, cosmetic store chain comes to Vietnam

Japanese cosmetic and pharmaceutical store chain Matsumoto Kiyoshi opened its first store in HCMC on Sunday at the Vincom Center shopping mall in District 1.

Hirai Shinji, chief representative of the Japan Trade Promotion Organization (JETRO) in HCMC, said it is a good time for Japanese corporations to expand their business in Vietnam since the pandemic has been contained and economic activities are gradually recovering.

Source: VIETNAMPLUS

EVFTA brings myriad opportunities for Vietnam exporters: official

The EU-Vietnam Free Trade Agreement (EVFTA), two months after taking effect, has brought back several opportunities for Vietnamese exporters, said Deputy Minister of Industry and Trade Tran Quoc Khanh at a conference held in Ho Chi Minh City on October 17

Source: VIETNAMPLUS

Vietnam to post highest GDP growth rate in Asia in 2021: HSBC

Vietnam stands out as the only ASEAN economy to achieve positive growth in 2020 and rebound to an 8.1 percent growth rate in 2021 – the highest in Asia, the Hong Kong Shanghai Banking Corporation (HSBC) said in a recent report.

Source: VIETNAMPLUS

Vietnam, Japan to allow resumption of short-term business trips

The Governments of Vietnam and Japan are set to come to an agreement to allow businesspeople to resume travelling between the two countries for short work-related trips as early as this month, reported Yomiuri Shimbun newspaper.

Vietnam will be the third country to which the Japanese government has allowed short-term visitors to travel back-and-forth, following Singapore and the Republic of Korea.

Source: VIETNAMPLUS

Vietnam’s Economic Growth Accelerates on Industry, Exports

Vietnam’s economic growth accelerated in the third quarter as exports and manufacturing began recovering from the pandemic-induced slump of the first half of the year.

Source: Bloomberg

Vietnam’s e-commerce forecast to grow 20 per cent in Q4

Vietnam’s e-commerce market is forecast to climb 20 percent in the last quarter of this year to reach US$12 billion by year-end if the Covid-19 pandemic is brought under control. This is the forecast by the Ministry of Industry and Trade (MoIT) in a recent report on Vietnam’s e-commerce market against the backdrop of the Covid-19 pandemic.

Source: The Star

Vietnam continues to move up on Lowy Institute’s Asia Power Index

Vietnam continues to see its power in Asia rise in 2020 according to the Asia Power Index 2020 Edition released by the Lowy Institute on October 19. According to the index, Vietnam ranked 12th out of the 26 measured countries and territories, up one place compared to 2019. This is the second consecutive year Vietnam has seen an increase in its comprehensive power.

Source: Nhan Dan Online

Vietnam homes sales, rents and supply all fell in first half, but its property sector remains attractive thanks to successful coronavirus response

The outlook for Vietnam’s property market, however, remains positive despite the drops in home sales, rents and the supply of new homes, because of its success in controlling the spread of the coronavirus pandemic.

“With effective containment of the pandemic, arguably the best in Southeast Asia, Vietnam has gained even more attention among international investors,” Cushman’s Crane said. “Many investors were attracted before the pandemic, and we expect even more new entrants in 2021.”

Source: SCMP

HCMC metro work gives massive boost to nearby house prices

Construction of the first metro route in Ho Chi Minh City has boosted residential prices in its vicinity to 25-75 percent higher than launching prices.

A recent report by real estate consultancy CBRE said that ever since the construction of Metro Line 1 began in 2012, many residential and retail developments began adjacent to the route, particularly along the Hanoi Highway in District 2’s Thao Dien, Binh An and An Phu wards.

Source: VNExpress