HSBC economists forecast GDP expansion of 3% in 2020 for Vietnam, the only ASEAN country they expect to have positive growth this year.
The construction industry grew 4.5% year-on-year during the first six months of 2020, which was higher than the GDP growth rate of 1.8%.
Viet Nam's growth rate this year would reach 3.8 per cent if there is no second COVID-19 outbreak in the second half of the year and the economic activities gradually resume, the Viet Nam Institute for Economic and Policy Research (VERP) has predicted.
The development of a Covid-19 vaccine is necessary for the Vietnam's economy to return to its pre-Covid-19 status.
Vietnam’s effective containment of COVID-19 should allow it to make a quicker rebound than most other economies in the region and its GDP growth can be around 2.3 percent this year, Sian Fenner, an economist from Oxford Economics wrote in a July 14 report.
The National Bank of Cambodia (NBC) said the Kingdom’s economic growth stagnated in the first half amid the Covid-19 blows to the global economy and forecast that gross domestic product (GDP) would contract 1.9 per cent this year.
Vietnam could widen fiscal deficit and public debt by an additional 3 – 4 percentage points of GDP without affecting the national financial security in the short- and long-terms.
Fitch Solutions have revised up its 2020 real GDP growth forecast for Viet Nam slightly to 3 per cent, from 2.8 per cent previously.
Vietnamese economy’s resilience, the government’s capable handling of the pandemic, and it being a beneficiary of supply chain relocation could help the country rebound quicker versus the region.
Local shares tumbled on Monday as the second-quarter GDP growth record low and the relentless spread of coronavirus hit market sentiment.