With Covid-19 and trade tensions driving the shift of production lines from China to Southeast Asia, Việt Nam, in particular, seems to have emerged as an attractive destination for investors and manufacturers alike, experts have predicted.

Foreign-invested enterprises (FDI) in Vietnam have been maintaining production despite difficulties caused by the COVID-19 outbreak while preparing plans to recover after the pandemic ends.

The fact that nearly 35,000 enterprises have now withdrawn from the market three months after the COVID-19 outbreak first appeared in Vietnam reveals the huge impact it has had on business and production.

Phạm Văn Công, Chairman of the Việt Nam Cashew Association (Vinacas), has said the cashew industry will struggle to achieve its export target of US$4 billion this year due to the novel coronavirus (COVID-19) pandemic.

Regional Comprehensive Economic Partnership (RCEP) dialogue partners are advancing the review of legal texts, with an expectation of the process finishing in July so the pact can be signed at the ASEAN Summit in Vietnam later this year as scheduled.

After the Covid-19 earthquake and a historical contraction, China is rebounding, whereas advanced economies face a depression-like plunge. The consequent tsunami is about to hit Southeast Asia.

The Asean Business Advisory Council (Asean-BAC), in pledging to work closely with Asean nations in their fight to contain Covid-19, has called on their leaders to take urgent measures to ensure there are uninterrupted production and supply chains of essential food and beverage.

The economic impact of COVID-19 is longer and more intense than thought, and we have again lowered our macro forecasts. We now see global GDP falling 2.4% this year, with the U.S. and eurozone contracting 5.2% and 7.3%, respectively. We expect global growth to rebound to 5.9% in 2021.

The International Monetary Fund has forecast Vietnam’s GDP to grow at 2.7 percent this year, higher than that of its regional peers.

The European Union (EU) – Việt Nam Free Trade Agreement (EVFTA) will officially take effect for both the EU and Việt Nam after the National Assembly ratifies and the two sides complete the notification procedures under the agreement.