Vietnam becomes more important link in global supply chain: US newspaper

Thursday, 09/09/2021 15:36
(CPV) – COVID-19 has disrupted but not derailed Vietnam’s expanding role in global supply chains and growth prospects, according to a September 7 article on the US media outlet Bloomberg.

Vietnamese economy forecast to grow 7 percent during 2021-2025

Illustrative photo (Source: VNA)

“Even with the supply chain and shutdown problems they have because of COVID-19 right now, Vietnam’s still going to do very well economically and it’s becoming, every day, a more important piece of the global supply chain - especially for things that affect American consumers,” Adam Sitkoff, Executive Director of the American Chamber of Commerce in Hanoi, said on Bloomberg.

According to Mr. Adam Sitkoff, although the pandemic “got in the way” of further supply-chain gains and with the full vaccination rate still under 3%, Vietnam is attracting investment, including from further relocations out of China. He highlighted Vietnam’s best-in-Asia growth performance last year at 2.9%.

The article on Bloomberg stressed that analysts at Australia & New Zealand Banking Group Ltd. sounded a similar tone in a report on September 7, highlighting Vietnam’s longer-term prospects despite the current “deep slump” in domestic demand.

“Beyond the near-term challenges, Vietnam’s medium term economic prospects remain favorable,” analysts including Dhiraj Nim and Khoon Goh wrote in the report, which also warned of downside risks to ANZ’s 5.2% full-year 2021 growth forecast. “The pandemic has not changed the country’s attractiveness as a manufacturing hub. There is also ample room for policy support to nurture economic recovery further.”

Compiled by BTA

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