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[NEWS] Vietnam takes first steps to restart economy

[NEWS] Vietnam takes first steps to restart economy

Vietnam has flattened its coronavirus infection curve with a sledgehammer, and after some initial success, it has now begun to reopen its economy.

Zero Deaths from conoravirus

With only 270 confirmed cases and no official virus-related deaths, Vietnam is loosening its lockdown rules in most countries, allowing some businesses to reopen.

There are some skeptics about the low number of infections, due to limited testing in the population: As of April 21, Vietnam tested about 1,881 per million people, compared with about 7,500 in Singapore. However, Vietnam’s approach has won praise from agencies such as the U.S. Centers for Disease Control and Prevention and the World Health Organization, and its outbreak is in contrast to Singapore and Indonesia is nearby, where restrictions are being extended as cases continue to spike.

Fred Vietnam has had to deal with SARS, bird flu and various financial crises, said Fred Burke, managing partner at the law firm Baker McKenzie in Ho Chi Minh City, advising the government on foreign investment rules. They have learned that they need to act quickly and thoroughly. This country is very suitable for restoration back.

Trade-War Winner

Vietnam has been a favorite location for foreign investors seeking an alternative manufacturing center for China after escalating trade tensions between the United States and the world’s second largest economy.

Government goals are now being built on that momentum. According to the Ministry of Planning and Investment, committed to foreign direct investment rose 7.2% last year, with $ 24.6 billion flowing into production. That helped boost economic growth to 7.02%, the second fastest pace since 2007.

The impact of the virus on China – considered by many foreign companies to be increasingly expensive with an aging population – makes Vietnam look more attractive to businesses, A survey of some group members said they are still reassessing their position in China – Vu Tu Thanh, senior Vietnam representative of the US-Asean Business Council said.

Risks Remain

Japan, Vietnam’s second largest investor in the first quarter with $ 848 million, announced earlier this month that it set aside $ 2.2 billion for the stimulus package to encourage investors. Production moved production out of China. Vietnam will certainly benefit, said Burke, who has been a member of a government council advising on foreign investment administrative reforms.

To be sure, Vietnam is still not out of the forest. Deputy Prime Minister Vu Duc Dam, chairman of the National Steering Committee for the Prevention and Control of Coronav Virus, warned the country still has a big risk of outbreaks.

It must also prepare for a sustained decline in global demand, with months before factories can start strengthening orders for everything from Nike Inc. shoes. to LG Electronics Inc. home appliances.

According to World Bank data, Vietnam relies heavily on exports – accounting for more than 100% of GDP, which means growth had a push in the first quarter, slowing down to 3.82%. The international monetary fund is expected to weaken by 2.7% for the whole year.

The easing of restrictions does not mean life will return to normal.

For starters, lockout isn’t fully lifted, says Gareth Leather, an economist at Capital econom Ltd. in London, who predicted the contraction of GDP this year. Immediately, the others won back to their pre-crisis habit. The fear of being infected with the virus means that people will continue to practice away from society for a while.

The cost for many residents of the nation’s 96 million people is illustrated by a kilometer-long queue at free ATMs ATM – a semi-automatic distribution center that provides free rice to laid-off and laid-off workers waste.

The government believes that its serious actions to reduce viruses have finally saved the economy from more pain. While factories wait for global demand to return, the country’s domestic economy will begin to revive, said Adam McCarty, chief economist of the Mekong Economics in Hanoi.

How Vietnam has treated this virus is signaling to the rest of the world that it is no longer a developing country, he said. They reported that they had a profound flair in the way they handled problems

Source: VNI

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