- News in Vietnam
- 3 December 2021
Vietnam is in the top 5 countries with an impressive trade connectivity index
Vietnam has been in the group with impressive results in improving and connecting international trade for 20 years, along with Mexico, the Netherlands, the Sierra Republic, and the UAE.
The information comes in a special report on the 10th anniversary of the Global Connectivity Index (GCI) release (DHL and New York University’s Stern School of Business. This index measures the degree of globalization through international flows of trade, capital, information, and people. Accordingly, the GCI statistical research team is based on more than 3.5 million data points on flows between countries for 2001-2020.
Currently, Vietnam ranks 38th out of 169 countries in GCI, one place higher than in 2017.
This report assesses that the five countries mentioned above have achieved good results through applying different methods to increase connectivity based on the international opportunity that best suits their context.
Particularly for Vietnam, DHL and NYU Stern also consider “rising stars” in the manufacturing field. Accordingly, despite facing Covid-19, Vietnam still shows signs of regaining its economic and production growth momentum. Vietnam’s resilience to the effects of the pandemic in 2020 shows that the country can bounce back quickly.
Vietnam’s economy grew 2.9% in 2020, and export value rose 28.4% in the first half of 2021 from a year earlier, making the country a rare economic success story during the pandemic.
Rajiv Biswas, Managing Director of IHS Markit, assessed that, despite the short-term risks and the medium-term economic outlook, there are many driving forces to increase the advantages and strengthen the economic growth in Vietnam. This is expected to boost GDP as well as GDP per capita development enormously.
Ms. Cyn-Young Park, ADB’s Director of Regional Cooperation and Integration, also agreed with this view. “Even if investors may delay decisions due to the current Covid-19 situation, Vietnam remains a strong investment destination in the region with possible changes in the structure, value chain architecture, and with the implementation of the RCEP (Regional Comprehensive Economic Partnership),” she said.
On the other hand, the report also emphasizes that Vietnam has the advantage of being geographically located near China (the world’s largest market and supply source) and situated along regional shipping routes with good connectivity. Strong internationality plays a significant role. Therefore, Vietnam is convenient in attracting FDI flows from this country.