Trade - Service

The economy is subject to a strong rebound of 7% GDP growth in 2021.

The agreement would protect lawful rights of the business communities in Vietnam and the US, promoting greater trade relations.

The agreement will facilitate small businesses' access to competitiveness-enhancing technology, business management skills, and capital,

Sixty-two percent of Vietnamese respondents said that they would eat at home more often in the post-Covid-19 period.

Vietnam could become a key part in the supply chains of South Korean companies in the fields of automobile, electronics and garment.

The majority of imported cars in Vietnam in March came from Thailand and Indonesia.

The target remains a challenging task, given growing uncertainties in the global and domestic economies, including the complicated evolution of the Covid-19 pandemic.

Vietnam’s informal sector, accounting for an estimated 25 – 30% of GDP, is among the groups hardest hit by the pandemic, but not included in GDP calculation.

Prime Minister Nguyen Xuan Phuc has requested government agencies to ensure national food security and avoid shortage of rice in any circumstance.

Fitch also lowered Vietnam's GDP growth projections to 3.3% in 2020 from 7.0% in 2019, on account of the pandemic.

In 2020, raising public investment disbursement is the only way to lessen the pain of economic growth.

A change in the epicenter of the pandemic from China to the US and Europe is causing greater impacts on Vietnam’s economy.

Local airlines could see a decline in revenue of up to VND65 trillion (US$2.7billion) due to the pandemic, much higher than an earlier estimate of VND30 trillion (US$1.27 billion).

Many retailers in phone and electronics segments focus on developing online channels to survive during the coronavirus pandemic period.

Once Vietnam's parliament ratifies the trade deal, it can enter into force 30 days after Vietnam and the EU have notified each other that legal procedures have been completed.

The magnitude of the impact of the coronavirus outbreak will depend on the length of disruptions, which is hard to predict, Moody’s noted.

From April 1, Grab and beGroup announced to suspend their operations, except for delivery and personal shopping services.

Based on newly-updated data, Vietnam could export around 6.5 – 6.7 million tons of rice in 2020 without any significant impact on food security.

Once Vietnam's National Assembly also ratifies the EVFTA, the agreement can enter into force, most likely in early summer 2020.

Passenger transport from/to Hanoi and Ho Chi Minh City will be halted from March 30 to April 15, except for inter-provincial passenger routes.