The key drivers in Vietnam’s economic recovery

Despite there being a major outbreak of COVID-19 last year, exports increased 19 percent to USD336.3 billion

Vietnam’s economy is bound for recovery this year, and it will be done with the help of several key drivers, reported VietnamPlus. 

The country’s exports will continue to outperform the area, according to Nguyen Phuoc Hung, Vice Chairman of the Ho Chi Minh City Business Association. This growth can be attributed to cost competitiveness and a series of major key free trade agreements.

Hung shared that despite there being a major outbreak of COVID-19 last year, exports increased 19 percent to USD336.3 billion, resulting in a trade surplus of USD4.08 billion.

He also added several forecasts for businesses and investments throughout the year. These include foreign investments increasing and SMEs continuing to lack labor and capital. Moreover, he pointed out that enterprises should consider diversifying export markets can deal with unexpected challenges oil price hikes and the long-term effects of Russian sanctions.

They should embrace e-commerce and the digital revolution.

On the other hand, the services and tourism sectors are considered new growth engines for this year. Foreign investors have been keeping tabs ever since the Vietnamese Government announced that it will be reopening tourism activities under new normal conditions starting 15 March, according to VietNamNet.

More: How Vietnam is preparing for its reopening

The reopening of borders along with a set of national entry rules and regulations, as well as the resumption of international flights, have created a foundation for economic recovery.

The recent Government support package of USD15.42 billion will play a vital role in restoring the economy, according to Deputy Minister of Planning and Investment Tran Quoc Phuong.

Ho Chi Minh City was heavily struck by the pandemic, Tran Du Lich, a member of the Prime Minister’s economic advisory committee, emphasised and so required more intense recovery programs.

“We encourage the Government to go further and faster in reopening so that Vietnam can realize its full potential as a leader in the tourism sector,” said the European Chamber of Commerce in Singapore.

The Property Report editors wrote this article. For more information, email: [email protected].