Vietnam could resume pre-COVID-19 growth levels by next year: McKinsey & Company
Vietnam could resume pre-COVID-19 growth levels by next year although the pandemic threw a spanner in the works for the country’s thriving economic growth story, McKinsey & Company said in report published on Consultancy.asia.
Hanoi (VNA) – Vietnam could resumepre-COVID-19 growth levels by next year although the pandemic threw a spannerin the works for the country’s thriving economic growth story, McKinsey &Company said in report published on Consultancy.asia.
According to the firm, two factors have combinedto cushion the blow of COVID-19 on Vietnam’s economy. For one, the country wassuccessful in containing the virus. In fact,reports highlight that the last report of community transmission of Covid-19 inVietnam was two months ago.
Lockdown in Vietnam lasted only three weeks,and the country has been among the first to open for business, it said.
The second conducive factor is the state ofVietnam’s consumer market, the firm said, adding that a growing middle classwith money to spend has led to a boom in the country’s consumer market, to theextent that domestic spending accounts for nearly 70 percent of Vietnam’s GDP.
Back in April, more than half of Vietnameseconsumers had reported a dip in spending, according to a McKinsey & Companyreport. GDP growth dipped to a decade-low in this quarter. However, the biggestcuts came in the discretionary spending segment, which fortunately accounts forjust over a quarter of the GDP.
More than 40 percent of Vietnam’s GDP,meanwhile, is driven by spending on necessities, which has remained robustthroughout the crisis and is expected to remain steady in its wake.
Both these factors mean that steadying theship is relatively less of a challenge for Vietnam in the context when supply chains across the globe were thrown off balanceby the lockdown, and Vietnam’s export numbers were affected by closures inChina and other key markets, leading to a 21 percent dip in FDI for Vietnam inthe first three months this year.
Forecasts suggest that most economies shouldbe up and running by the end of this year, while a degree of momentum shouldaccumulate by the middle of 2021. Provided that there is no second wave ofinfections, Vietnam could be up and running by this period. In fact, the AsianDevelopment Bank, the World Bank and the International Monetary Fund allpredict that Vietnam could reach a GDP growth rate of up to 7 percent by nextyear, the firm said./.
Vietnam’s gross domestic product (GDP) is forecast to expand 7 percent during 2021-2025 on the back of new-generation free trade agreements, according to the Ministry of Planning and Investment’s National Centre for Socio-Economic Information and Forecast (NCEIF).
The Vietnam Report JSC and VietNamNet newspaper announced the top 500 largest enterprises in Vietnam (VNR500) in 2019 at a ceremony in Hanoi on January 9.
Vietnam has been hit hard by the current novel coronavirus pandemic (COVID-19), but it will show signs of recovery in the post-coronavirus period, the World Bank said in its Vietnam Macro Monitoring report for May.
The new Government decree also simplifies loan procedures while expanding credit incentives to include organic and circular agriculture, allowing them to access preferential terms similar to those of high-tech and value-chain based agricultural production.
Developed with state-of-the-art infrastructure, the Da Nang FTZ is designed to become a leading regional economic centre and a strategic growth pole in Vietnam’s new development landscape.
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.
Photo: consultancy.asia 
