(VOVWORLD) - Vietnam’s economy, predicted to grow 2.7% in 2020 in an IMF report, is showing signs of an even better recovery, according to a recent article posted on the moderndiplomacy.eu website.
Dr. Pankaj Jha of India's Jindal School of International Affairs (JSIA) said this means that Vietnam, after successfully defeating the COVID-19 virus, is on its way to recovering faster than most other economies in the region. He said Vietnam’s economic indicators look strong in the second quarter.
The US market has also been showing signs of recovery, and US-Vietnam trade is expected to reach 80 billion USD a year, according to the article. The FTA between Vietnam and the EU permits tariff-free entry of more than 71% of Vietnamese goods to Europe, and more than 65% of EU goods will get tariff-free entry into the Vietnamese market.
Dr. Jha said Vietnam has been seeing a rise in foreign direct investment from European and US companies because of its improved legal and business environment.
He added that the relatively low cost of labor in Vietnam and the growth of small and medium enterprises (SMEs) encourages foreign investors to develop high technology sectors and create an economic ecosystem which can provide employment to many Vietnamese workers.
He said Vietnam might reap the benefits of post-COVID economic growth due to the swiftness of its business environment.