After successfully controlling the first outbreak of the COVID-19, Vietnam had no new infected cases since mid-April, 2020. The country has settled into the “new normal” and focused on economic recovery. However, the first infection of the virus in the coastal city of Danang on 25th July make Vietnam suffered the second coronavirus wave. A strict lockdown was enforced in Danang. The travel in out of the city also was heavily restricted.
Nevertheless, by virtue of rapid responses from authorities, Vietnam can effectively beat the COVID-19 virus outbreak once again. Now, Vietnam has undergone days without any community transmission of the coronavirus.
Let’s take a look at how Vietnam responded to the COVID-19 epidemic, the resilience of Vietnam’s economy, and the shift of supply chain to the country amid the coronavirus crisis.
1. Vietnam’s response to its second COVID-19 outbreak
As aforementioned, the second wave of the COVID-19 happened in Vietnam at the end of July. Danang – a famous tourist destination in Vietnam detected a new case in the community. As usual, the Vietnamese government reacted quickly and strictly to the new outbreak. Since the source of the infection was unknown, Danang was lockdown immediately to avoid the spread in the community. Residents just left their homes for really essential activities. Some other cities also carried out mass rapid tests for returnees from Danang to detect the suspected cases in time. Flights to and from Danang has been suspended by the end of July.
In general, after a month, the COVID-19 pandemic in Vietnam has been controlled. To date, Vietnam has recorded a total of 1094 COVID-19 cases with about 35 fatalities. Vietnam has now enjoyed over three weeks without any community transmission, defeating the second wave of the COVID-19 outbreak.
Like in the first wave, Vietnam has responded quickly and forcefully, said Professor Michael Toole, a research expert at the Burnet Institute in Melbourne
2. The resilience of Vietnam’s economy amid the COVID-19 epidemic
With the handling of the second COVID-19 outbreak, the Vietnamese government has focused on economic recovery. According to the World Bank’s Vietnam economy report, Vietnam’s economy continued to have a positive sign. Vietnam’s exports were stable with a 1.42% growth rate per month. Over the last eight months, Vietnam received 19.5 billion USD in FDI.
The International Monetary Fund still expected that Vietnam will grow 2.8% in spite of the Coronavirus crisis. The Vietnamese government has also introduced incentives to attract foreign investment and support business’s resilience.
Vietnam is still being expected to be one of the few countries that will continue to grow in 2020, said PricewaterhouseCoopers, an international consultancy firm
3. A shift of the supply chains to Vietnam
With opening economies to foreign investment, Vietnam is still considered an appealing investment destination for multinational companies worldwide. Quite a few companies are choosing Vietnam as an alternative sourcing option for other countries by virtue of its stable economic growth, competitive labor cost, tax incentives, convenient location, and technology updates. Economists also predict that many businesses are more likely to reevaluate their supply chains to reduce risk from future shocks.
As for the construction industry, Fitch Solutions predicted that Vietnam’s building construction sector will grow at 7% over the next decade. Especially, the number of engineers in the construction industry in Vietnam surge. This will provide a huge workforce for foreign companies who are looking for outsourcing services in the Southeast Asia region.
As for Building Information Modeling (BIM) technology, Vietnam has been beginning to apply BIM to some public projects. There is the emergence of BIM solution providers to meet the demands of the market. They are able to provide BIM solutions for both the domestic and international markets. Vietnam BIM engineers have several great qualifications to implement large-scale BIM projects.
The COVID-19 pandemic likes the litmus test of how well the country’s capability is getting along. Vietnam has proven itself to be a nation that has the strength to tackle challenges. The coronavirus crisis gave Vietnam a chance to reinforce companies’ beliefs. Vietnam now becomes an attractive destination for foreign investors that want to diversify their supply chain.
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