German media shine spotlight on prospects of Vietnamese market
VOV.VN - E-newspaper DVZ of Germany has published a story by Claudius Semmann which details Vietnamese success in containing the spread of the novel coronavirus (COVID-19) pandemic, whilst simultaneously maintaining its bright outlook amid the ongoing impact of the global crisis.
The nation has proved to be very successful in responding to the threat of the pandemic and has already witnessed rapid development to become a popular production base. By the end of 2020 the country with a population of just under 100 million people had only reported 1,465 confirmed COVID-19 cases and 35 deaths, the article states.
The DVZ piece cites data released by the International Monetary Fund (IMF) which indicates that the economy grew by 2.9%, one of the highest rates in the world. However, this represents its lowest growth over the past three decades, according to the report on the Agility Emerging Markets Logistics Index. Indeed, whilst domestic activity had recovered first, there was also a robust growth in local exports, especially in terms of the high-tech area.
According to a report set out by the market researchers of Transport Intelligence (TI), the country benefits from free trade agreements signed with the EU and the UK, as well as being part of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPPP).
This has served to give Vietnamese goods better access to both the Canadian and Mexican markets, respectively. Both before and during the course of the pandemic, the nation has attracted numerous investment, including those from manufacturers who are keen to relocate their production from pandemic-hit areas.
Recent years has witnessed the country move the value chain from textiles and clothing to microchips, smartphones, and other electronics. Apple and its suppliers, Foxconn, Pegatron, as well as Panasonic, were among the companies to start manufacturing within the Vietnamese market, all of whom moved to expand production or who have announced new production plans this year, it said.
According to data released by the TI, approximately 40% of exports go to the United States and the EU, whilst the country may potentially face problems in infrastructure systems such as roads and ports.
The article also cites current analysis from the international credit insurer Atradius which indicates that the nation is one of the markets in which German exporters regard has good prospects for generating additional sales in the second year of COVID-19.
According to the piece, various companies in the transport, logistics, and textiles sectors will benefit from growing global demand. Domestically, agriculture, construction, and infrastructure, as well as retail and manufacturers of durable consumer goods, will benefit from increasing domestic demand.