WORDS ON THE STREET 70th anniversary of Hanoi's Liberation Day Vietnam - Asia 2023 Smart City Summit Hanoi celebrates 15 years of administrative boundary adjustment 12th Vietnam-France decentrialized cooperation conference 31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Home / Economy / Trade - Service
Vietnam economy will face unprecedented challenges from coronavirus outbreak: Moody’s
Minh Anh 11:22, 2020/04/02
The magnitude of the impact of the coronavirus outbreak will depend on the length of disruptions, which is hard to predict, Moody’s noted.

While the impact of the coronavirus outbreak in Vietnam has been less severe than in other economies in Asia, the situation can worsen as the coronavirus spreads more widely within the country and its economy will likely face unprecedented challenges, Moody’s Investors Service has said.

 Vietnam is heavily dependent on external trade

While domestic transmission of the coronavirus remains relatively limited for now, companies in Vietnam are confronted by both supply and demand shocks as economic activity in their major trading partners slows, the US-based rating agency said in a note sent to Hanoitimes.

The impact on tourism will intensify as the Vietnamese government has barred entry of all foreign nationals, while domestic consumption is also waning as residents are restricted from leaving their homes. The unemployment rate is likely to rise, further depressing domestic consumption. Credit demand in 2020 will be weak as potential borrowers turn cautious to ride out economic challenges.

The magnitude of the impact of the coronavirus outbreak will depend on the length of disruptions, which is hard to predict, Moody’s noted.

According to government data, Vietnam’s GDP expanded by an estimated 3.82% in the first quarter this year, the slowest pace over the past decade as the Covid-19 pandemic has taken heavy toll on all sectors.

The pandemic has prompted Fitch Solutions to lower its forecasts for Vietnam’s 2020 real GDP growth to 2.8% from 6.3% previously.

In its latest report, the World Bank has also revised down Vietnam’s GDP growth for 2020 from 6.5% to 4.9%. This rate, however, is still the highest among East Asia and Pacific economies. If the pandemic persists, Vietnam’s growth could slow to 1.5%.

 Source: WB's “East Asia and the Pacific in the time of Covid-19" report.
RELATED NEWS
TAG: Vietnam GDP moody\'s
Other news
20:11, 2024/07/23
Vietnam targets US$7,500 GDP per capita by 2030
By the end of this decade, Vietnam is expected to be among the top three Southeast Asian countries in terms of industrial competitiveness.
16:07, 2024/07/20
Gov’t mulls creation of oil and gas trading exchange
Such a platform would help minimize price manipulation, ensure a flexible pricing mechanism, and improve the distribution and circulation of oil and gas.
21:59, 2024/07/19
Hanoi promotes women's role in safe agri-food trade
The city will focus on strengthening enforcement of food safety regulations in food production and trade facilities.
16:17, 2024/07/17
Vietnam’s stock market set for strong year-end growth
The projected P/E ratio for the VN-Index this year is 11.5, below the 5-year average of 13.4, potential for the benchmark to rise in the second half of the year and 2025.
09:56, 2024/07/17
Hanoi ramps up food safety inspections, identifying and rectifying violations
The city's health department will continue to carry out regular, specialized and random inspections.
16:37, 2024/07/16
Vietnam under pressure to achieve high growth in 2024-2025
The Government's best-case growth scenario for 2024 is 6.5-7%, higher than the goals set by the National Assembly and forecasts by international organizations.