Rising exports and effective control of the coronavirus have kept Vietnam's economy growing despite the pandemic (Photo: //asia.nikkei.com/) Hanoi (VNA) - Vietnam is shaping up as Southeast Asia's singleeconomic success story in the coronavirus era, maintaining steady positivegrowth as other economies struggle to recover, Nikkei Asia reported onNovember 19.
Vietnam's real grossdomestic product expanded 2.6 percent on the year in the third quarter, markinga second straight quarter of growth amid the pandemic. The InternationalMonetary Fund (IMF) sees the country rising to fourth in nominal GDP in theAssociation of Southeast Asian Nations (ASEAN) this year, passing Singapore andMalaysia and gaining on the Philippines.
In contrast to otherASEAN economies, Vietnam has succeeded in keeping the virus under control.Rising exports have also helped to drive growth, as companies relocateproduction from China, the newspaper said.
Vietnam’s exportsgrew 9.9 percent on the year in October to 26.7 billion USD, and the Ministryof Industry and Trade projects a full-year rise of between 3 - 4 percent.
According to NikkeiAsia, an ultra-large container ship operated by Maersk docked at Cai Mep Portin late October, the first for southern Vietnam's largest port. Vietnam's growingexports have boosted shipping demand enough to make it worthwhile for shipsbound for Western countries to stop there. This allows for more directtransportation of Vietnamese goods to buyers, which lowers shipping costs,shortens transit time and makes the country more competitive as an exporter.
Vietnam’s achievement in fighting COVID-19 has helped the country reduce the pandemic’simpact on its economy as manufacturing has resumed faster than it did elsewherein the region, job losses were limited, and consumer spending, which accountsfor 70 percent of GDP, has remained solid.
The IMF's full-yearGDP forecast shows a 1.6 percent rise in Vietnam, but drops of 6 percent inSingapore and Malaysia and a 7.1 percent slump in Thailand, it said.
Vietnam's per capitaGDP of about 3,500 USD remains well below Singapore's 58,500 USD and Malaysia's10,200 USD. But the pandemic is accelerating a shift in the region's economicpecking order.
Though some ASEANcountries predict a sharp rebound next year, Vietnam could remain the soleeconomy to see actual growth into the first half of 2021, depending on how theoutbreak progresses, it said./.
VNA
