Vietnam economy fastest-growing in Southeast Asia despite COVID-19
(VOVWORLD) - Vietnam has been the fastest-growing economy in Southeast Asia during the current COVID-19 outbreak, according to an Asian Development Bank report on Asia’s outlook for 2020, even though the growth rate of the Vietnamese economy dropped to 3.8% in the first quarter, after a growth rate last year of 6.8%.
 Vietnam has been the fastest-growing economy in Southeast Asia during the current COVID-19 outbreak, according to an Asian Development Bank report (Photo: BusinessInsider) |
Vietnam’s processing industry has maintained operations despite many difficulties. Agricultural production has stagnated, however, due to lower export demand and severe saltwater intrusion in the Mekong Delta. Travel restrictions imposed to slow the spread of COVID-19 have also slowed domestic consumption.
The ADB report predicted that if the epidemic can be controlled in the first half of 2020, Vietnam’s economy can recover last year’s growth rate of 6.8% next year. A growing middle-income population, an energetic private business sector, an improving domestic business environment, and participation in a number of new bilateral and multilateral trade agreements are factors that will help recharge the economy. Vietnam will also benefit from China’s success in containing COVID-19.