Vietnam’s GDP highest in Southeast Asia
The GDP of the country posted a growth of 2.62% in the third quarter this year, higher than second quarter’s 0.39%, but lower than first quarter’s 3.68%, making Vietnam the only country in Southeast Asia to have positive growth through the pandemic.
The main factors contributing to the steady positive growth were rising exports – a consequence of businesses relocating production to the country from China, and Vietnam’s ability to contain the effects of COVID-19, said Reuters.
Export revenue stood at US$26.7 billion in October, up 9.9% year-on-year, data from the Ministry of Industry and Trade (MoIT) revealed. The MoIT expects the full-year growth of exports to be 3%-4%.
This growth in exports has made it worthwhile for big container ships to dock at ports in Vietnam instead of other ports such as Singapore for direct transportation of goods to consumers, at lower costs and in shorter transit times, and consequently giving the country a competitive edge as an exporter.
Manufacturers have been relocating their factories from China to Vietnam to avoid American tariffs due to Sino-American trade friction. MNCs and mainland Chinese companies are moving their production to Vietnam also to leverage on the latter’s skilled and low-cost labour.