Coronavirus, and its Impact on Vietnam’s Economic Growth

The economy of Vietnam suffered losses due to the coronavirus pandemic, natural disasters as well as sluggish global economy. It is worth mentioning that, Vietnam’s economic growth fell to the lowest level in at least three decades, according to data provided by the government.

People should take into account that, the economy grew 2.91% in 2020 after having posted gross domestic product growth above 7% for two consecutive years. This information came from the General Statistics Office.

According to the information provided by the General Statistics Office, the country likely posted a trade surplus of $19.06 billion in the year. Interestingly, the average consumer prices rose 3.23%.

As stated above, this is the slowest gross domestic product (GDP) growth level in decades. Nevertheless, amid the negative impacts of the coronavirus pandemic, without exaggeration, it is considered a success for Vietnam. As a reminder, the growth rate is among the world’s highest.

People should take into account that, the government was able to contain the spread of the virus. Moreover, they managed to keep the country’s economy open. It is worth mentioning that, the pandemic is more or less under control in Vietnam.

Vietnam’s economic growth and the main challenges

Thanks to strict quarantine as well as tracking measures, Vietnam quickly contained coronavirus outbreaks, allowing economic activity to rebound faster than in much of Asia. As of December 28, the country recorded less than 1,500 cases, and this fact once more underlines the strength of the country.

As mentioned earlier, the country’s economic growth dropped to the lowest level in decades. However, even this result is higher than in many other countries.

Interestingly, the processing and manufacturing industry grew 3.98%, remaining the main growth driver for the economy. Moreover, the services sector rose 2.34% and the agricultural sector was up 2.68%. People should take into account that, exports and foreign investment were robust.

It is worth noting that, from October to December, the economy grew 4.48% from a year earlier, the slowest rate for a fourth-quarter since at least 2011. Importantly, the General Statistics Office revised third-quarter growth to 2.69% up from 2.62%.

As can be seen from the information stated above, the coronavirus pandemic, natural disasters as well as the sluggish global economy affected Vietnam’s economic growth. Hopefully, the country has the chance to cope with all challenges. Nevertheless, it would take time to get the global economy back on track.