A street in HCM City is quiet during the weekend due to the pandemic (Source: VNA)
Hanoi (VNS/VNA) - Fitch Solutions on March 24 revised down Vietnam’s economicgrowth in 2020 to 6.3 percent from 6.8 percent previously due to the Covid-19outbreak.
In a report on the outlook for emerging markets (EM), Fitch noted that Vietnam hadlow fiscal flexibility, given its high public sector liabilities, to manoeuvrewith regard to policy, which could limit the size, speed and effectiveness of theirresponses.
Fitch also downgraded the growth of other emerging markets, forecasting thatthe pandemic would pull EM growth down to 2009 levels.
“Although we have not seen many large localised outbreaks of Covid-19 acrossemerging markets, we forecast EM growth to come in below 3.0 percent in 2020.This will mark a sharp deceleration from the recent high of 4.8 percent in 2017and the slowest pace of growth since 2009 during the financial crisis, when EMsgrew by 2.6 percent in 2009,” Fitch said.
It noted it had already made several revisions to its growth forecasts andexpected more over the coming weeks, as an increasing number of countriesexperience outbreaks of their own and as more governments impose localisedlockdowns and travel restrictions.
According to Fitch, the combination of financial market stress hitting EMs,less policy space, weakening external demand and a rising number of localisedcoronavirus cases will weigh heavily on growth.
“Global financial market stress has seen a sharp tightening of liquidityconditions for EMs, which we believe will weigh significantly on growth. Thesharp sell-off in markets has resulted in around a 30 percent decline in theMSCI Emerging Market Equity Index, around a 350 basis points (bps) widening inthe JP Morgan Global EMBI Spread, and about an 8 percent decline in the MSCI EMFX Index since January 2020 on the back of a recent 9 percent appreciation ofthe US dollar across the board. Historically, this type of volatility has led asharp reduction in growth across EMs in the months following the period ofstress.”
While not surprising, there is clear evidence that financial market stress inEMs results in a sharp slowing in growth after financial conditionsdeteriorate.
Going forward, Fitch expected ongoing financial stress and especially the sharpwidening of credit spreads and declining equity, currency and commodity marketsto weigh on growth./.
Fitch Solutions has revised down Indonesia’s economic growth forecast in 2020 as the COVID-19 pandemic places a heavy burden on its state budget and current account and limits Bank Indonesia’s monetary space to support the weakening rupiah.
At the request of US Deputy Secretary of State Steven Biegun, Permanent Deputy Foreign Minister Bui Thanh Son on March 20 held phone talks with leading officials of the foreign ministries of the US, Australia, Japan, New Zealand, Republic of Korea and India on the situation of the COVID-19.
Politburo member and Secretary of the Hanoi Party Committee Vuong Dinh Hue has asked local enterprises to step up operations while preparing their response plans for the COVID-19 pandemic.
Prime Minister Nguyen Xuan Phuc has ordered ministries, sectors and localities to boost the disbursement of public investment capital and consider this as the most important measure to make up for the losses the COVID-19 epidemic causes to economic growth.
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The Binh Duong Association of Supporting Industries (BASI) is expected to promote the usage of domestically manufactured components while supporting businesses in accessing international markets, strengthening linkages, and promoting deeper integration into global supply chains.
PwC Vietnam forecasts a vibrant M&A market in Vietnam’s healthcare sector in 2025, driven by rising demand for high-quality medical services and a growing middle class. Pharmaceutical companies, private hospitals, and specialised medical facilities, particularly in ophthalmology and oncology, are predicted to be key targets for M&A.
The central province of Quang Nam is set to become a hub for the medicinal plant industry, with Ngoc Linh ginseng designated as the core crop, under the Prime Minister's decision issued earlier this year.
The North-South Expressway project is scheduled for completion by 2030, aiming to establish the groundwork for Vietnam’s modern railway industry and stimulate regional economic development, positioning the country for a significant economic leap in the era of national rise.
The probe, initiated on June 11 following a petition by the US Coalition for Fair Trade in Hardwood Plywood, targets products classified under HS Code 4412 and 9403 imported from China, Indonesia and Vietnam.
Sun PhuQuoc Airways was born as a perfect piece in Sun Group’s strategic vision to build a premium ecosystem of tourism, entertainment, real estate, and aviation. With a pioneering ambition, Sun PhuQuoc Airways is not just an airline, but a symbol of connection – bringing the world to Phu Quoc and taking Phu Quoc to the world.
A key change in the draft decree is a provision requiring bank transfers for gold transactions valued at 20 million VND (765 USD) and above, to enhance transparency and verify customer identities.
In the first four months of 2025, trade turnover between Vietnam and Cambodia surpassed 3 billion USD, marking a 7% increase compared to the same period in 2024.
On June 19 alone, a total of 2,005 trucks completed customs clearance at Lang Son’s border gates — the highest single-day figure ever recorded in the province. Of these, 634 carried exports and 1,371 imports.
The OECD Economic Surveys: Vietnam 2025 report focuses on analysing the country’s macroeconomic fundamentals, the impact of international integration on attracting foreign investment and trade, and the country’s prospects for developing a low-carbon economy.
Antoine Colin, Senior Vice President for Global Supply Chain Digital Transformation & Resilience at HP Inc., affirmed HP’s strategic commitment to building a supply chain and ecosystem in Vietnam and the region.
Deputy Director General of the Ministry of Industry and Trade (MoIT)’s Trade Promotion Agency Bui Quang Hung emphasised that logistics has evolved from a technical function into a core capability for Vietnamese exporters to maintain their competitive advantage in the US market.
A trade official has suggested companies work closely with shipping lines, airlines, and freight forwarders to monitor routes, transit times, and potential surcharges while exploring broader cargo insurance to cover risks like war and terrorism.
In addition to institutional reform, the agency is also rolling out key solution groups to combat counterfeit goods, imitations, and intellectual property infringements in the digital environment.
The event, co-organised by the Vietnam Trade Office in the UK and TT Meridian, a local importer of Vietnamese fresh produce, aims to build a national lychee brand and encourage broader recognition of Vietnamese fruits in a competitive, high-end market.
The industry's performance has been powered by bold investments in modern production lines, enabling Vietnamese firms to produce complicated products which were exclusive to advanced economies.
A street in HCM City is quiet during the weekend due to the pandemic (Source: VNA) 
