DVZ website screen shot (Photo: VNA) The article noted that Vietnam has been very successful indealing with the pandemic and has already developed into a popular productionbase.
By the end of 2020, the nearly 100 million-strong country hadonly reported 1,465 laboratory-confirmed COVID-19 cases and 35 deaths, it said.
It cited data from the International Monetary Fund (IMF)showing that the economy grew by 2.9 percent, one of the highest rates in theworld. However, this was its lowest growth in 30 years, according to the reporton the Agility Emerging Markets Logistics Index. Domestic activity hadrecovered early. There was also a robust export trend, especially in thehigh-tech area, it added.
According to the Transport Intelligence (TI) marketresearchers, Vietnam benefits from the free trade agreements with the EU and theUK as well as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership(CPTPP), which has provided Vietnamese goods with better access to the Canadianand Mexican markets. Both before and during the pandemic, the country attractedinvestments, including those from manufacturers who wanted to relocate theirproduction from pandemic-hit areas.
In recent years, Vietnam has moved the value chain fromtextiles and clothing to microchips, smartphones and other electronics. Appleand its suppliers Foxconn and Pegatron as well as Panasonic were among thecompanies that started manufacturing in Vietnam, expanded production orannounced new production plans there in 2021, it said.
According to TI data, around 40 percent of exports go to theUS and the EU. It pointed out that Vietnam may face problems in infrastructuresystem such as roads and ports.
The article also cited current analysis by the internationalcredit insurer Atradius indicating that Vietnam is also one of the markets inwhich German exporters have good prospects of generating additional sales inthe second coronavirus year.
Thanks to low wage costs and favourable conditions forforeign direct investment, many companies are relocating simple productionsteps from China to Vietnam, Atradius expert Thomas Langen was quoted as saying.
According to the article, companies in the transport andlogistics as well as textiles sectors will benefit from the increasing globaldemand. Domestically, agriculture, construction and infrastructure as well asretail and durable consumer goods manufacturers benefit from expanding domesticdemand, it added./.
VNA
