Vietnam exports to US surge

  • Vietnam’s economy is returning to solid export-fueled growth that is likely to continue thanks to the U.S. fiscal stimulus, according to the Wall Street Journal.
  • Its GDP grew at 4.48% y/y in 1Q21, according to the General Statistics Office of Vietnam.
  • Vietnam’s exports in the first two months of 2021 jumped 23.7% y/y to USD48.74bn, of which 28.4% went to the U.S.
  • The U.S. newspaper said: “The American share of Vietnam’s overseas sales has risen considerably.” The U.S.’s share of Vietnam’s exports has indeed increased by around 9 pp in the last two years.
  • The U.S.’s economic growth of 6.5% in 2021 projected by the Organization for Economic Cooperation and Development will keep demand strong, benefiting Vietnamese exports.
  • Vietnam has emerged a big winner in the China-U.S. trade war with supply chains moving to it from China and the country also becoming a transshipment station to avoid American tariffs.
  • The newspaper also said Vietnam’s control of the Covid-19 pandemic is among the most impressive in the world, especially given the country’s income bracket.
  • Other countries in the region would likely have to wait far longer to fully recover the economic losses incurred during the pandemic, it added.
  • Vietnam was one of the few economies in the world to achieve growth in 2020, with its GDP expanding by 2.9%.
  • The World Bank and the Asian Development Bank have forecast growth of 6.6% and 6.1% for the country in 2021.

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