Vietnam set for modest economic growth in 2020

The South-East Asian country is continuing to feel the impact of the pandemic after record growth was recorded in the previous two years.
By: | September 7, 2020

As the country begins a gradual recovery from the COVID-19 pandemic, the Vietnamese government is expecting the economy to grow by 2.0-2.5% in 2020. This comes after record growth in the two years prior, with 2019’s 7.02% growth close to repeating 2018’s record high of 7.08%.

Across many cities across Vietnam, businesses have continued to be impacted due to COVID-19. In the capital Hanoi, strict social distancing measures have been imposed at cafes, restaurants and pubs since August 19, while non-essential businesses such as bars and nightclubs have been closed since the end of July in Hanoi and Ho Chi Minh City.

More than 40,000 firms in Ho Chi Minh City, including household busines, have applied for tax payments extensions and land rent deferrals, while around 7.8 million workers have lost their jobs or were furloughed, according to Vietnam’s Ministry of Labour, War Invalids and Social Affairs (MOLISA).

READ: COVID-19 halts business operations in Vietnam

In Da Nang, shops and restaurants were allowed to reopen on September 5, although for the latter, only takeaways are allowed. Gathering of more than 20 people remains banned, while non-essential businesses such as beauty salons, karaoke outlets, movie theatres and gyms remain closed.

In a boost to the tourism and transport industries, Vietnam also plans to restart international commercial flights to and from six Asian cities from mid-September.

These include Guangzhou, Seoul, Vientiane, Phnom Penh, Taipei and Tokyo, and will see an approximate 5,000 overseas visitors to Vietnam weekly. Those arriving are still required to undergo two weeks of quarantine, unless the duration of their visit is under 14 days.