Vietnam’s central bank is expected to pursue a stronger dong, especially as this might weigh on the recovery of the country’s export-oriented manufacturing sector over the coming months.

Vietnam would remain a prime candidate for gains over the near term, according to Fitch Solutions.

Prior to the passage of the PPP law, Vietnamese authorities had been struggling to attract private capital to the country’s burgeoning infrastructure sector.

Vietnam’s economy is expected to buck the global trend and expand by 3.0% year-on-year in 2020, being one of the best performing economies in the world in 2020.

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.

A shortfall of 25% compared to the initial financial plan would trigger the risk-sharing mechanism in public-private partnership (PPP) projects.

In June 2020, Vietnam’s four state-owned mobile operators - Viettel, VNPT-Vinaphone, GMobile and MobiFone - agreed to share about 1,200 base transceiver stations (BTS).

Fitch Solutions’ deficit forecast is wider than the Ministry of Finance’s 5.0-5.1% deficit estimate.

The Vietnamese government intends to meet 80% of its domestic pharmaceutical demand through local drug manufacturers.