(Illustration by Vietnam+)

However, Economist for Thailand and Vietnam at Standard Chartered, Tim Leelahaphan, believed that Vietnam is moving towards its goal of becoming a regional supply-chain hub, a modern industrial economy and a high-income country in the future. Vietnam managed the COVID-19 situation well in 2020, further enhancing its appeal to foreign investors. The country had already benefited from the ongoing supply-chain shift in recent years.

In the near term, the country’s pandemic management will be crucial to the outlook. While the global pandemic has weighed on Vietnam’s economy via reduced tourism, supply-chain disruptions and weaker overseas demand, external indicators are showing a strong recovery. Exports in the first half of the year rose 28.4 percent year-on-year and imports rose 36.1 percent. Standard Chartered maintained positive prospect for the Vietnamese economy in mid and longterm.