Vietnamese economy stays resilient to external shocks: WB

While Vietnam remains significantly exposed to the COVID-19 outbreak and the ongoing turbulence in the global financial markets, its economy stays resilient to external shocks in the first few months of 2020, according to the World Bank (WB).

Tuesday, March 31, 2020 16:41

Vietnamese economy stays resilient to external shocks: WB ảnh 1

Ho Chi Minh City, the southern economic hub of Vietnam (Photo: VNA)

Hanoi (VNA) – While Vietnam remains significantlyexposed to the COVID-19 outbreak and the ongoing turbulence in the globalfinancial markets, its economy stays resilient to external shocks in the firstfew months of 2020, according to the World Bank (WB).

In its East Asia and Pacific Economic UpdateApril 2020, the WB said on the upside, Vietnam is strongly positioned tobenefit from numerous free trade agreements that are coming into force over theforecast period.

In the first two months, its exports haveexpanded by 8 percent, FDI inflows amounted to 2.5 billion USD and retail saleswere up by 5.4 percent, the bank said, noting that while prospects remainfavourable for the Vietnamese economy in the medium term, GDP growth will beaffected negatively by the recent coronavirus outbreak, now a global pandemic.

The WB cited preliminary estimates as suggestingthat the rate of expansion of the economy could decline to about 4.9 percent in2020.

The most important negative impacts associatedto the outbreak are on tourism and on manufacturing due to supply chaindisruptions. Inflationary pressures are projected to increasetemporarily.

With many households now wage dependent even inrural areas, a slowdown in tourism, hotels, and catering as well asmanufacturing sectors could temporarily increase poverty during the first halfof 2020, the WB predicted.

According to the report, the fiscal deficit willtemporary increase in 2020 due to lower revenue and the fiscal stimulus thatwill partially compensate for the negative effect of the global pandemic on theVietnamese economy.

Over the medium term, growth is projected torebound back to 7.5 percent in 2021 and converge at around 6.5 percent in 2022,reflecting an improved external demand and a firming of the services sector, aswell as a gradual recovery in agricultural production, the WB added.

It also suggested Vietnam manage external risksby diversifying its trade flows, improving its competitiveness and adhering tonew trade agreements./.

VNA

#COVID-19 #World Bank #WB #East Asia and Pacific Economic Update #free trade agreements #Vietnamese economy #coronavirus #GDP growth #updated Vietnam news #Vietnamplus #Vietnam News Agency

See more

Production at a small enterprise in Thanh Hoa province. Linkages will help small and medium sized enterprises diversify markets. (Photo: VNA)

Local businesses should strengthen links to overcome global challenges: Experts

22/04/2025 01:09

Tran Thi Hong Minh, Director of the Institute for Policy and Strategy Studies under the Party Central Committee’s Commission for Policies and Strategies, said: "In a world of rapid and complex changes, linkages help businesses diversify markets, connect with new models and better use resources. They are also critical in mitigating risks and enhancing overall competitiveness.”

A worker uploads cargo on an aircraft of Vietnam Airlines. (Photo VNA)

Aviation industry soars back to pre-pandemic levels

22/04/2025 00:05

According to recent data from the Civil Aviation Authority of Vietnam (CAAV), the first quarter of 2025 saw a total of over 20.7 million passengers flying, up 9.2% year-on-year.

Nestlé Vietnam announces investment expansion in Vietnam operations (Photo: thanhnien.vn)

Nestlé announces investment expansion in Vietnam operations

21/04/2025 17:48

Since 2011, Nestlé’s NESCAFÉ Plan has supported over 21,000 coffee farming households in adopting internationally recognised sustainable farming practices. These efforts have helped reduce water use by 40–60%, cut chemical fertiliser use by 20%, and increase farmers' incomes by 30–150% through crop diversification

At the signing ceremony between Vietbam Airlines and Amadeus IT Group (Photo: VNA)

Vietnam Airlines utilises AI to enhance customer experience

21/04/2025 17:41

Vietnam Airlines is continuously expanding its fleet and flight network, enhancing service quality, and intensifying the application of new technologies across all business operations, aiming to become a digital airline this year.

US tariff threat prompts Vietnam to map out agricultural growth scenarios

21/04/2025 15:22

In the first scenario, if the tariff rate remains at 10% throughout 2025 and is applied uniformly to all countries, both Vietnam's exports and its agricultural growth target for 2025 would face minimal impact.

Gemalink Port in Ba Ria-Vung Tau province. Vietnam cut import tariffs for some US products from the end of March this year. (Photo: VNA)

US farm produce exports to Vietnam likely to rise with import tariff cut

21/04/2025 12:06

The Ministry of Finance confirmed that the adjustment reflects Vietnam’s strategy to promote trade liberalisation with key partners, especially the United States, and support domestic consumption.

Bank Satisfaction Rankings 2025 (Photo: Decision Lab)

Techcombank, SHB stand out in Decision Lab Bank Satisfaction Rankings 2025

21/04/2025 11:49

Specifically, with 84.6 points, four points higher than the previous year, Techcombank surpassed Vietcombank to secure the top spot. Vietcombank fell to the second place with a score of 84.3, while MB climbed to the third place with a score of 81.6, up one place from the previous period.

Vietnamese electric vehicle (EV) maker VinFast Auto hands over 400 units of VF 3 model to Indonesian dealers and customers. (Photo: VinFast )

VinFast delivers 400 e-vehicles to Indonesian dealers, consumers

21/04/2025 11:28

As the latest addition to VinFast's diverse portfolio of all-electric vehicles in Indonesia, the VF 3 mini e-SUV is strategically positioned as a pivotal catalyst in the firm's efforts to promote green transition.

At a furniture production factory in Quy Nhon city (Photo: VNA)

Vietnamese exporters reinvent solutions on US’s 90-day pause on reciprocal tariffs

21/04/2025 10:11

Amidst the US’s decision to delay new import tariffs for 90 days, Vietnamese businesses are taking advantage of this opportunity to implement both short-term and long-term solutions to minimise potential negative impacts.

Vietnam to diversify markets for agricultural products amid global trade shifts

21/04/2025 09:43

According to the Ministry of Agriculture and Environment (MAE), Vietnam’s agricultural product exports are inevitably affected by disruptions in global supply chains and the imposition of unilateral, stringent tariff policies by major economies. Nonetheless, these challenges also present an opportunity for Vietnam to adjust its export strategy and focus more intently on emerging and high-potential markets.

At a meeting of the Can Tho People's Committee to announce Aeon Mall project implementation plan (Photo: VNA)

Work to start on over 200 million USD Aeon Mall project in Can Tho this weekend

21/04/2025 09:15

This will be the ninth shopping mall of Japan’s AEON Group in Vietnam and the second by the Japanese retailer in the Mekong Delta region.

Reference exchange rate up 9 VND at week’s beginning

21/04/2025 09:03

The State Bank of Vietnam set the daily reference exchange rate for the US dollar at 24,907 VND/USD on April 21, up 9 VND from the last work day of the previous week.

Delegates at the 2025 Annual Public-Private Partnership Group Conference held in HCM City on April 17. (Photo: VNA)

Pepper industry focuses on market diversification, sustainability to maintain exports

21/04/2025 08:43

Speaking at the 2025 Annual Public-Private Partnership Group Conference organised by the Vietnam Pepper and Spice Association, Le Viet Anh, the VPSA’s chief of office, reported that in the first quarter Vietnam exported 39,853 tonnes of black pepper and 7,807 tonnes of white pepper for 326.6 million USD.

Goods containers waiting for export at Tan Vu Port, Hai Phong city. (Photo: VNA)

Vietnam stays on course for 8% growth despite tariff risks

21/04/2025 00:10

The Government remains determined, encouraging ministries, local authorities and businesses to stay optimistic, tackle challenges head-on and seize emerging opportunities.

PM Pham Minh Chinh inspects the Can Tho-Ca Mau expressway project. (Photo: VNA)

Can Tho-Ca Mau expressway project must be completed by December 19: PM

20/04/2025 20:04

The expressway, spanning over 110 km, connects Can Tho city with Hau Giang, Bac Lieu, Kien Giang, and Ca Mau provinces, complemented by 25.85 km of connecting routes.

Vietjet launches two routes connecting Hanoi and HCM City with Con Dao. (Photo: Vietjet)

Vietjet launches two routes connecting Hanoi/HCM City with Con Dao

20/04/2025 16:03

Vietjet launched two direct flights from Hanoi and Ho Chi Minh City to Con Dao on April 19, with congratulations and welcome from local authorities, residents, and tourists.

Delegates commence the construction of AEON Hai Duong Shopping Centre in Hai Duong Province on April 19. (Photo courtesy of AEON Vietnam)

Construction of AEON Hai Duong Shopping Centre kicked off

20/04/2025 15:23

With a total investment of around 1.18 trillion VND (45.6 million USD), the AEON Hai Duong Shopping Centre is designed with a total floor area of approximately 3.6 hectares. Spanning an estimated gross floor area (GFA) of roughly 38,100 sq.m, the shopping centre will feature ample parking space for nearly 600 cars and 1,200 motorcycles.