Vietnam’s manufacturing purchasing managers' index has risen a lot more quickly and strongly than the rest of ASEAN.
Vietnam and Singapore are reporting a faster-than-expected V-shaped recovery compared to the rest in the Southeast Asian region, according to Singapore-based Business Times, citing a report from Malaysia’s largest bank Maybank Kim Eng.
Vietnam would be the only major economy in ASEAN that escaped recession in 2020. Photo: Thanh Hai. |
Maybank’s report suggested generous government subsidies, record low interest rates, high household savings rate and work-from-home policies may be driving these “V” recoveries.
Vietnam is the only major economy in ASEAN that escaped recession, the economists said. Exports and retail sales have normalized after a brief contraction, while the “V” recovery in freight carried confirms the strong pick-up in domestic business and transport activities, they said, adding that the country's manufacturing purchasing managers' index has risen a lot more quickly and strongly than the rest of ASEAN.
In Singapore's case, semiconductor production and exports have staged a sharp "V" rebound, while container throughput has also climbed back to pre-pandemic levels, they said. At the same time, property transactions in both private and public housing markets have jumped to 40% above pre-pandemic levels, boosted by record low mortgage rates and ample liquidity.
In 2021, ASEAN’s recovery could start to broaden when a vaccine becomes more widely available, according to the report.
Specifically, it expected a vaccine to help improve domestic mobility, ease strict lockdowns and social distancing rules, a shift that will make a significant difference to the larger pandemic-hit domestic economies, particularly the Philippines and Indonesia.
The International Monetary Fund (IMF) predicted Vietnam would be the only country among major economies in ASEAN – 5 (Thailand, Malaysia, Indonesia, the Philippines, and Vietnam) expected to deliver positive growth this year at 1.6%.
Additionally, the Philippines is set to have the biggest GDP decline this year among ASEAN countries, with a contraction of 8.3%, compared to a 3.6% decline projected in June. It is followed by Thailand (-7.1%), Malaysia (-6%), and Indonesia (-1.5%).
Overall, ASEAN-5 economies are expected to contract by 3.4% in 2020, before expanding 6.2% in 2021.
For this year, the Vietnamese government targets economic growth of 2% in normal conditions and 2.5% if favorable factors emerge.
Other News
- Hanoi Great Souvenir Fair 2024 to take place next week
- As orders rise, Vietnamese textile firms see better prospects in 2024
- C.bank to auction nearly 17,000 gold taels on April 22
- Trade ministry proposes purchasing renewable electricity mechanisms without EVN’s involvement
- Australia and Vietnam develop competitive electricity markets
- Vietnam, Thailand advance realization of “Three Connections” strategy
- Vietnamese Gov’t to expand list of electricity buyers under direct power agreement scheme
- Viettel opens largest data center in Vietnam to support AI development
- Vietnam’s economy expected to grow at solid pace in 2024-2025: ADB
- Apartment prices in Hanoi are closing in on those in Ho Chi Minh City
Trending
-
Book series about General Giap released in five foreign languages
-
Vietnam news in brief - April 23
-
Hanoi tourism sector struggles with rising airfares
-
ASEAN Future Forum 2024: Promoting regional centrality
-
Central bank moves gold auction to tomorrow
-
[Video]Hanoi beauty spots featured in saxophone legend Kenny G's music video
-
Colorful stage shows in Hoan Kiem Lake pedestrian area
-
It happened as it had to happen
-
Hanoi street where dead appliances come back to life