VIETNAM: Covid-19 success is boosting foreign investments

Last updated on May 7th, 2021 at 08:47 am

HO CHI MINH – Vietnam’s success in their fight against the coronavirus has been a significant factor to assess possible risks in business as foreign investments are shifting their business to Asian countries including Vietnam.

According to global consultancy McLarty Associates managing partner Kellie Meiman Hock, the companies are evaluating how countries are managing and responding to the pandemic as investment decisions are being made in the current environment.

Vietnam appears to be one of the most favorable nominees as companies are beginning to assess and evaluate measures. The outbreak has cause serious loss in the demand-supply chain of series of Chinese-based foreign firms.

International Finance Faculty of the Academy of Finance head Dinh Trong Thinh said that the country’s success in containing the virus shows prospects for future investment.

Pegatron, a Taiwan based company which manufactures Apple iPhones are planning to set up a factory in Vietnam before the year ends. Foxconn is also set to establish a factory in the country and will begin operations by next year.

Google, Microsoft, Nintendo are also reported to be making plans to shift some of the production in the country. Central Institute for Economic Management Economist Vo Tri Thanh is very optimistic that the country has strong capacity to weather this pandemic and said that Vietnam’s growth will reach 7.5 percent in 2021 due to improved external demand and a strengthened service sector.