2020 was a remarkably difficult year. COVID-19 hit all socio-economic sectors throughout Vietnam. The country also battled one of the century’s worst droughts and just recently reeled from the worst floods in decades.
However, GDP grew 2.91% compared to 2019; among the world’s highest. The trade surplus swelled to a record high of 20.1 billion USD. Success in containing COVID-19 and the introduction of sound policies turned the country into a trusted destination for foreign investors.
Ministry of Planning and Investment figures show that nearly 300 foreign businesses are intending to invest in or add to their investment in Vietnam.
Foreign investors invested in 19 sectors last year, with processing and manufacturing taking the lead.
Analysts have been optimistic about Vietnam’s economic growth in 2021 based on the latest situation as well as the sound decisions and policies adopted by the Party and Government.
Analysts from the Asian Development Bank (ADB) believe that Vietnam is showing stronger resilience than most similar economies and that its medium- to long-term economic outlook remains positive.
Local analysts, however, believe that the country still needs to seek new growth drivers.
The Government has been urged to adopt more drastic solutions for economic restructuring to bolster resilience.
Foreign organisations have forecast that Vietnam’s economy will recover strongly in 2021.
Standard Chartered, for example, has predicted that growth will rebound to 6.5%./.
