An employee flattens garment in a factory in southern Long An Province. Photo by VnExpress/Quynh Tran.
Vietnam has the highest rate of companies in the world expecting revenues to increase this year despite the Covid-19 pandemic, a survey has found.
Two thirds of respondents, all senior business executives, expected their revenues to rise in the next 12 months, compared to 34 percent globally, according to the survey by global consulting firm Grant Thornton.
In terms of economic optimism, Vietnam was second globally together with China with 65 percent of respondents having a hopeful outlook for the next 12 months compared to the global average of 44 percent. The UAE topped with 69 percent.
When the survey was done in May and June, Vietnam had begun to ease its nationwide social distancing campaign, which was one reason why its optimism was higher than the global average, the study said.
Although Vietnam’s exports in the first six months declined for the first time in 10 years as buyers canceled orders, almost half the surveyed companies expected to see exports increase in the following 12 months, compared to a quarter globally.
Businesses are also making plans for investment. In Vietnam, more than half planned to increase investments in plants, machinery and buildings, while the ratio for the Asia Pacific was 28 percent.
“This could well reflect the movement of manufacturing away from China into Vietnam and expectations of opportunity arising from the ratification and coming into force of the E.U.-Vietnam Free Trade Agreement,” the survey said.
Vietnam has however not been immune to the global impacts of the pandemic. Its GDP growth in the first half fell to a 10-year low of 1.8 percent. Last year it had been 7.02 percent.