Business News

Vietnam witnessed a growth of import-export activities in the first four months of 2021, hitting a 10-year record high despite the pandemic, but profits have been eaten away by high logistics and raw material costs.

While concerns over interruption of global supply chains linger due to serious outbreaks of COVID-19 in India, Thailand, and elsewhere, Vietnam is attempting to remain on the front foot with continued business confidence and inflow of foreign investment.

Vietnam’s economic growth is expected to rebound to 6.7% this year, despite the recent resurgence of the COVID-19 pandemic in nearby countries, and rise to 7% in 2022, said Andrew Jeffries, ADB Country Director for Vietnam, at an event releasing the latest Asian Development Outlook (ADO 2021) in Hanoi.

Soaring raw material prices coupled with delays in shipping due to the COVID-19 pandemic significantly pushed up steel prices recently, according to the Ministry of Industry and Trade.

In April 2021, Vietnam witnessed an increase of roughly 24.1% year on year in industrial production; new corporate establishments and State funds disbursement hit multi-year highs; import and export value expanded at a 10 year high; and business confidence picked up, according to the latest data released by the General Statistics Office (GSO).

As of April 20, Việt Nam attracted US$12.25 billion in foreign direct investment (FDI), equivalent to 99.3 per cent compared to the same period last year, according to the Ministry of Planning and Investment’s Foreign Investment Agency (FIA).

The number of US-based companies seeing Vietnam as a top sourcing market has doubled over the past four years as a result of the global investment relocation trend from China.

Vietnam is blessed with excellent sunshine throughout the year, providing it with a huge potential for developing solar power.