Vietnam is among the “brightest” spots in Asia despite the challenge of trying to contain the coronavirus pandemic — and its economy is poised to rebound, a UBS economist said.
“Vietnam is suffering some pain from the impact of Covid-19, but the outlook is looking one of the brightest in the region,” said Edward Teather, Asean economist at UBS Research.
He said that retail sales, imports (and) industrial production were all actually up on the year in the month of June, which is better than you can say for most economies in the region.
Many economies contracted in the second quarter of 2020 compared to a year ago, but Vietnam’s gross domestic product grew slightly at an estimated 0.36%.
The country’s free trade deal with the European Union, which was ratified last month, could boost inflows of foreign direct investment, Teather said.
Overall FDI levels are likely to be hindered, in part because investors cannot travel freely, he predicted. However, there is “plenty of activity” in the pipeline, and those investments could pick up in 2021 as border restrictions are eased.
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