In the wake of announcing accomplishment in containing the coronavirus, Vietnam is marking itself as a safe spot for doing business grabbing the eyes of international manufacturers who are willing to shift their supply chain from China.
Despite being a south-east Asian country (which region is currently one of the hotspots of Coronavirus), Vietnam has left the world spell-bounded by its effective measures taken during the outbreak.
The country has reported a small number of 320 cases and 0 deaths to date. According to a government survey, 85.7% of 126,565 enterprises polled in Vietnam said they had been negatively affected by the pandemic, with those operating in the aviation, tourism, food and education sectors most affected.
Vietnam’s accomplishment in pushing back the pandemic was driven partially by a program of focused testing and the mass, concentrated isolation of a huge number of individuals. Following five years of development, foreign investment in Vietnam fell by 15.5% in the initial four months of the year to $12.3 billion, as indicated by information from the General Statistics Office (GSO). Despite this, the country is targeting annual GDP growth of above 5% this year. It is an uncommon pocket of growth in a worldwide economy confronting a profound downturn due to the pandemic.
For this quick response, the country in on the verge of getting huge foreign investments to pour in after the pandemic. Kizuna Joint Development Corporation, a company that builds read-to-go factories in Vietnam said that it is accelerating plans to complete a 100,000 square meters factory in southern Vietnam fully expecting an expansion in post-pandemic interest. “The factory space will be ready within July”, said the company authority in an interview with the Reuters.
Michael Sieburg, a partner at Asia-focused consultancy firm YCP Solidiance said, “There is a sense from many of my discussions that Vietnam, relative to many countries in the world, will emerge even higher on the investor radar as a result.”
Many international investors already had their eyes on Vietnam before the pandemic to skip the increasing labor costs due to the US-China trade war. Vietnam’s response against the pandemic has acted as a catalyst to boost the confidence of foreign investors to relocate their businesses from China to Vietnam.
Vietnam’s deputy minister Tran Quoc Phuong said in a statement on a government website, “There will be many opportunities after the pandemic for our country and we are getting ready to grab them. These opportunities will include the shifting of investment, particularly by large multinational groups seeking to diversify their supply chains to other areas, including Southeast Asia. Vietnam is among the first of those destinations.”