Ratings agency Fitch Ratings says it expects Vietnam to see healthy economic growth in 2021, despite continued headwinds brought on by the covid-19 pandemic.

Earlier this week, the ratings agency revised its outlook on Vietnam from “Stable” to “Positive”, reflecting the country’s progress in strengthening important administrative processes, and continued improvement in its broader credit profile.

“In tandem with the global economy, Vietnam was materially affected by the COVID-19 pandemic, which resulted in the downturn last year. Nevertheless, the economy’s real GDP expansion of 2.9 percent in 2020 was among the best globally, supported by the government’s highly effective response to and containment of COVID-19 domestically,” said the company.

“Vietnam’s economy is well-placed to achieve a healthy recovery over the next one to two years as the pandemic becomes more contained, though near-term risks remain elevated, especially following larger domestic outbreaks over recent weeks.”

“We expect real GDP growth to rebound to 8.5% in 2021 before settling closer to Vietnam’s long-term trend rate of growth from 2022 onward. Vietnam’s attractiveness as a premier destination for FDI in Southeast Asia, along with its young, increasingly educated, and competitive workforce, should help to keep the country’s long-term development trajectory intact.”

(Fitch Ratings)