German newspaper Junge Welt (Young World) recently published a news story highlighting the strong recovery of the Vietnamese economy after over two years of grappling with the impact of the COVID-19 pandemic.
The recovery of industrial production has fueled economic growth in Vietnam. (Illustrative image).
Gerhard Feldbauer, in his article published on August 2, reported that while many Western economies are starting to show signs of recession, the Vietnamese economy is in the process of gathering full steam.
He cited data compiled by the General Statistics Office (GSO) of Vietnam last week which indicates that up to 85% of respondents in its survey expressed optimism moving into the third quarter of the year. In particular, among the 6,500 manufacturing companies and 6,800 construction companies taking part in the survey, approximately 20% of them stated that they would increase the number of employees in the third quarter, whilst only 9.3% of the companies asked had the opposite opinion.
According to the author, Vietnam appears to have successfully cushioned the impact of both the COVID-19 pandemic and the Russia-Ukraine conflict, with its economy expanding by 7.72% in the second quarter compared to 5.05% recorded in the first quarter of the year.
These positive results can mainly be attributed to the country’s strong increase in exports, he said, adding that June alone saw its exports grew by 20% over the same period from 2021.
Furthermore, the Hong Kong – Shanghai Banking Corporation (HSBC) recently reported that Vietnam is among the fastest growing economies in the region. The international bank noted that Vietnam is one of the few countries in the world that has still recorded positive economic growth over the past two consecutive years since the beginning of the COVID-19 pandemic.
The bank’s global report assessed that the country entered the year coming off the success of its strategy of living safely with COVID-19, coupled with high vaccination coverage and the easing of COVID-19 restrictions.
More than 600,000 foreign tourists visited Vietnam in the first half of the year, a figure which is a clear sign of the country’s continued economic recovery. In addition, foreign businesses remain confident of the Government’s policy as they continue to pour more capital into the Vietnamese market.
Samsung recently broke ground for a project to build a research and development centre with total investment capital of US$220 million. The electronics manufacturer from the Republic of Korea has also devised plans to expand operations in Bac Ninh and Thai Nguyen provinces where its existing production lines are operating efficiently. Meanwhile, Apple also moved 11 production lines from Taiwan (China) to Vietnam.
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