FOREIGN EXPERT POSITIVE ABOUT FDI TO VIETNAM (7/1)

Vietnam has been successful in controlling COVID-19 in 2020 and is likely to keep the situation contained next year, said Joseph Incalcaterra, chief economist for ASEAN at the HSBC Global Research, on an article recently published on www.dailymirror.uk.

Vietnam has been successful in controlling COVID-19 in 2020 and is likely to keep the situation contained next year, said Joseph Incalcaterra, chief economist for ASEAN at the HSBC Global Research, on an article recently published on www.dailymirror.uk.

Incalcaterra said Vietnam together with Singapore are two Southeast Asian countries that will be able to keep the pandemic under control and smoothly roll out vaccines.

He praised Vietnam’s handling of the virus, and said its response to the pandemic allowed the country to maintain its reputation as a “very good destination” for foreign direct investment (FDI). The country has been seen as an alternative manufacturing hub for companies, given that FDI this year remains very resilient into Vietnam.

Overall, however, Southeast Asia may not benefit from a vaccine in the near future, given the logistical difficulties in rural parts of the region.

“We really don’t have great visibility on the short-term recovery, given how deep the damage is,” he added.

According to him, until the virus is under control, it is hard to see this investment engine regain its momentum. Meanwhile, ambitious infrastructure programmes pursued by countries to make the region a “reliable manufacturing production base” have been installed, which he said, is the biggest short-term hindrance to growth in Southeast Asia.

Source: VIR