Forecast

Vietnam’s strong fundamentals remain and the country has built an enviable position in the global supply chain over the past years through its set of FTAs.

The economy will continue to face uncertainties in 2021, which requires a cautious and flexible approach in price management.

Domestic production and exports are key driving forces for Vietnam’s economy this year, state an expert.

A resurgence of Covid-19 in a number of countries across the world and geopolitical tensions between major powers continue to pose major risks to Vietnam’s economy.

The country would remain the only one with positive growth among five major economies in ASEAN, and its economic growth would rebound to 6.7% in 2021.

The country’s economic expansion in the third quarter is expected to be in a range of 1.04 – 1.69%.

The Covid-19 resurgence in July deals a further blow to the business community and the overall recovery efforts.

Vietnamese economy’s resilience, the government’s capable handling of the pandemic, and it being a beneficiary of supply chain relocation could help the country rebound quicker versus the region.

In 2020, the country’s domestic demand is set to benefit from generally supportive financial conditions amid low inflation and robust capital flows.