Illustrative image (Photo: VNA) Hanoi (VNA) – Vietnam’s economy is expected to grow 1.8 percent in 2020amid the COVID-19 pandemic and bounce back to 6.3 percent in 2021, according toa new report released by the Asian Development Bank (ADB) on September 15.
The Asian Development Outlook(ADO) 2020 Update, ADB’sannual flagship economic publication, says Vietnam’s economy will benefit fromthe continued diversion of production from China to Vietnam, and the implementation of theEuropean Union – Vietnam free trade agreement.
According to ADB Country Director for Vietnam Andrew Jeffries, lower domesticconsumption and weak global demand caused by COVID-19 have hurt Vietnam’seconomy more than expected. But economic growth will be resilient in 2020, inlarge part due to the government’s success in controlling the spread ofCOVID-19.
Economic growth will be supported by the country’s macroeconomic stability,increased public spending, and ongoing reforms to improve the businessenvironment, he added.
ADO 2020 Update says Vietnam’seconomic outlook over the medium and long term remains positive. The country’s participationin a large number of bilateral and multilateral trade agreements will help thecountry’s economic rebound.
Vietnam will also likely benefit from the current shifting of supplychains to low-cost countries, it says.
However, a prolonged global COVID-19 pandemic remains the biggest risk to Vietnam’sgrowth outlook this year and next year, it notes, adding that another threat isglobal trade tensions, which lead to rising trade protection and financialrisks that could be exacerbated by a prolonged pandemic./.
VNA
