Mckinsey assesses Vietnam’s economic recovery capacity

Vietnam could expect the strong growth of recent years to return next year, and will likely see its position as an offshoring location reinforced once the global economy begins to recover, as assessed by the Mckinsey & Company, a global management consulting firm.


In a recent article titled “Emerging from the pandemic, Vietnam must position itself for recovery,” the author said that Vietnam has gone through more than two months without community transmission, which has enabled the country to be among the first to fully reopen its domestic economy.

“Vietnam has fared better economically than many countries,” it wrote. GDP growth in the first quarter was at its lowest level since 2010, although it was still in positive territory at 3.8%.

As exports and tourism have been severely affected, domestic consumption will continue to be critical to boost economic recovery.

According to the article, manufacturing has a crucial sector for Vietnam’s growth, leading Vietnam to achieve one of the highest trade-over-GDP ratios in Southeast Asia.

Amid the COVID-19 outbreak, key steps were taken to keep operations running despite lockdowns in other countries./.