Vietnamese Prime Minister Nguyen Xuan Phuc smiled on Sunday during a visit to an industrial park, where he asked in regards to the health of employees, stroked their children during home visits and admired the loudspeakers produced in factories. The trip was a part of the reopening of the economy after the Covid-19 pandemic was contained in much of the country, where there’s little sign that the pandemic is raging globally.
Bad news elsewhere is in some cases excellent news for Vietnam, whose 46 days without local infections has allowed it to reopen and gain a bonus over other economies. HSBC bank last week dubbed it “Pho’nomenal Vietnam”, referring to the long-lasting noodle soup, in a report last week that said it was the one economy within the region to grow in 2020.
“We believe the headwinds from Covid-19 and trade tensions that are hurting so many other economies are turning into headwinds for Vietnam,” Devendra Joshi and Herald van der Linde, equity strategists at HSBC, said within the report.
Trade tensions between China and the United States are only one example of stories that was bad for some, equivalent to consumers who pay higher prices attributable to tariffs, but was ultimately good for Vietnam. The Southeast Asian country has been named a serious winner within the trade war as firms moved there from China.
COVID-19 is one other example of Vietnam’s brilliant side. He was not resistant to the virus, which forced schools and businesses to shut for weeks or months and led to first-quarter economic growth of just an annualized 3.8%, the bottom rate in a decade.
However, analysts say the pandemic is another excuse why firms are moving to Vietnam. The emergency situation led to flight cancellations and border closures, disrupting global supply chains. This raised concerns amongst firms that they were too depending on single suppliers, so a push to diversify meant moving more foreign investment to Vietnam.
Social distancing
“COVID-19 and rising trade tensions between the U.S. and China should accelerate companies’ reorganization of supply chains,” Joshi and van der Linde said.
Since Vietnam lifted national lockdown orders in most areas in mid-April, the economy has reopened unevenly. People have returned to work and college due to latest measures, from cafes that space customers farther apart to grocery stores that put tape on the bottom to separate people in line.
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Author: VOA News, June 2, 2020, 05:27
Vietnamese Prime Minister Nguyen Xuan Phuc smiled on Sunday during a visit to an industrial park, where he asked in regards to the health of employees, stroked their children during home visits and admired the loudspeakers produced in factories. The trip was a part of the reopening of the economy after the Covid-19 pandemic was contained in much of the country, where there’s little sign that the pandemic is raging globally.
Bad news elsewhere is in some cases excellent news for Vietnam, whose 46 days without local infections has allowed it to reopen and gain a bonus over other economies. HSBC bank last week dubbed it “Pho’nomenal Vietnam”, referring to the long-lasting noodle soup, in a report last week that said it was the one economy within the region to grow in 2020.
“We believe the headwinds from Covid-19 and trade tensions that are hurting so many other economies are turning into headwinds for Vietnam,” Devendra Joshi and Herald van der Linde, equity strategists at HSBC, said within the report.
Trade tensions between China and the United States are only one example of stories that was bad for some, equivalent to consumers who pay higher prices attributable to tariffs, but was ultimately good for Vietnam. The Southeast Asian country has been named a serious winner within the trade war as firms moved there from China.
COVID-19 is one other example of Vietnam’s brilliant side. He was not resistant to the virus, which forced schools and businesses to shut for weeks or months and led to first-quarter economic growth of just an annualized 3.8%, the bottom rate in a decade.
However, analysts say the pandemic is another excuse why firms are moving to Vietnam. The emergency situation led to flight cancellations and border closures, disrupting global supply chains. This raised concerns amongst firms that they were too depending on single suppliers, so a push to diversify meant moving more foreign investment to Vietnam.
Social distancing
“COVID-19 and rising trade tensions between the U.S. and China should accelerate companies’ reorganization of supply chains,” Joshi and van der Linde said.
Since Vietnam lifted national lockdown orders in most areas in mid-April, the economy has reopened unevenly. People have returned to work and college due to latest measures, from cafes that space customers farther apart to grocery stores that put tape on the bottom to separate people in line.
Companies which have adapted include Ford Vietnam. It added steps to disinfect cars during sale or repair, switched to cashless payments and offered distant sales consulting.
“The COVID-19 pandemic represents a challenging and volatile time for individuals, companies and countries around the world,” said Pham Van Dung, CEO of Ford Vietnam, adding that the corporate is committed to “keeping our employees, agents, and above all, customers and partners.”
Possibility to take off
Just because the Covid-19 pandemic has been a boon for video conferencing apps and residential exercise equipment, some startups in Vietnam are seeing a possibility.
Vibeji, based in Ho Chi Minh City, is a platform where people generate income by offering services, normally via video, from reading Tarot cards to teaching others the best way to make a book cover. This is a very good time for social distancing and distant work, the corporate said.
“We all need to play a role in this difficult time,” said Tri Lecao, CEO of Vibeji. “Moving work and services online is part of the solution.”
Companies within the communist country are also sensitive to the chance of a return of the virus. Herbert Laubichler-Pichler, general manager of Alma Resort, said that within the hospitality industry, for instance, firms mustn’t be content with just offering hand gel to customers. He urged people to take greater precautions and concentrate to continued dangerous behavior, equivalent to everyone ditching spices in restaurants.
“We cannot go back to what we were doing as if nothing had happened,” he said, adding: “We don’t want to undo all the fantastic work that has been achieved in Vietnam so far.”
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source: VOAnews.com
