China media hails Vietnam’s post-pandemic economic recovery

The article outlines that Vietnam has successfully weathered the COVID-19 crisis and has managed to revitalise its economy, with its trade value recording an impressive growth of 38.1% in March compared to the previous month, thereby helping its trade in the first quarter expand by 14.4% year-on-year.

The piece attributes this success to the Vietnamese strategy of living safely alongside COVID-19 coupled with its increased vaccination rate.

It cites statistics, saying exports rose 48.2% in March compared to February, and they will continue to be the main driver of growth in the country’s future economic recovery and development.

In addition to international brands such as Samsung, Intel, and LG which already have a presence domestically, an increasing number of electronic manufacturers like Luxshare Precision, Winston, Pegatron, and Goer have also moved their production facilities to Vietnam.

Explaining the country’s trade and export growth, the article states that, after joining the World Trade Organisation (WTO) in 2007, Vietnam has signed several free trade agreements with key bilateral and multilateral partners globally, including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the EU – Vietnam Free Trade Agreement (EVFTA), the UK – Vietnam Free Trade Agreement (EVFTA), and the Regional Comprehensive Economic Partnership (RCEP), becoming the country with the most FTAs ​​in the region.

With regard to the position of both Vietnam and China in the global industrial chain, the article quotes Chen Qing, an expert from the University of Science and Technology of China, saying there is huge complementarity rather than competition between the two economies. Boasting the advantage of low labour costs and a reliable production system, Vietnam has become a prime destination for a number of industries, especially garment making and electronic assembly

Chen Qing outlines that Vietnamese development not only does not impact employment in China, but on the contrary, the restructuring of the global industrial chain which began more than a decade ago also promotes the development of trade between both sides. As a result, China maintains its position as the largest trading partner and second largest export market of Vietnam, while the latter continues to be the former’s largest trading partner in ASEAN.

Commenting on the potential for future Vietnamese development, the article says that along with the post-pandemic period increasing domestic demand and tourism recovery, its economy will also maintain strong growth in the second quarter and throughout 2022. Following its decision to scrap quarantine regulations for international visitors, the local tourism industry is anticipated to be an important factor in evaluating the development trend of its economy.

The article also quotes Chu Sitan, an expert from the Center for Asia-Pacific Studies at the Shanghai Institute for International Studies, asserting that opening up for exchanges with the outside world will also serve to promote the return of international managers and experts, so as to benefit Vietnamese manufacturing industries.