German newspaper highlights Vietnamese market’s prospects

Update: 14:40 | 31/03/2021
German’s DVZ e-newspaper has run a story by Claudius Semmann highlighting Viet Nam’s success in controlling the COVID-19 pandemic and secure economic development, maintaining its bright outlook amid the global crisis.
German newspaper highlights Vietnamese market’s prospects
DVZ website screenshot. (Photo: VNA)

The article noted that Viet Nam has been very successful in dealing with the pandemic and has already developed into a popular production base.

By the end of 2020, the nearly 100 million-strong country had only reported 1,465 laboratory-confirmed COVID-19 cases and 35 deaths, it said.

It cited data from the International Monetary Fund (IMF) showing that the economy grew by 2.9 percent, one of the highest rates in the world. However, this was its lowest growth in 30 years, according to the report on the Agility Emerging Markets Logistics Index. Domestic activity had recovered early. There was also a robust export trend, especially in the high-tech area, it added.

According to the Transport Intelligence (TI) market researchers, Viet Nam benefits from the free trade agreements with the EU and the UK as well as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which has provided Vietnamese goods with better access to the Canadian and Mexican markets. Both before and during the pandemic, the country attracted investments, including those from manufacturers who wanted to relocate their production from pandemic-hit areas.

In recent years, Viet Nam has moved the value chain from textiles and clothing to microchips, smartphones and other electronics. Apple and its suppliers Foxconn and Pegatron, as well as Panasonic, were among the companies that started manufacturing in Viet Nam, expanded production, or announced new production plans there in 2021, it said.

According to TI data, around 40 percent of exports go to the US and the EU. It pointed out that Viet Nam may face problems in infrastructure systems such as roads and ports.

The article also cited a current analysis by the international credit insurer Atradius indicating that Viet Nam is also one of the markets in which German exporters have good prospects of generating additional sales in the second coronavirus year.

Thanks to low wage costs and favourable conditions for foreign direct investment, many companies are relocating simple production steps from China to Viet Nam, Atradius expert Thomas Langen was quoted as saying.

According to the article, companies in the transport and logistics as well as textiles sectors will benefit from the increasing global demand. Domestically, agriculture, construction and infrastructure as well as retail and durable consumer goods manufacturers benefit from expanding domestic demand, it added.

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(Source: VNA)