May 4, 2020 - Economy

Vietnam's economy could boom thanks to fast coronavirus response

Dion Rabouin

People wait in line for free rice in Hanoi. Photo: Nhac Nguyen/AFP via Getty Images

Three months after Vietnam detected its first case of coronavirus, the country of more than 95 million hasn't reported a death from the virus and most of its 270 confirmed cases have recovered, the Wall Street Journal reports.

Why it matters: Already growing as a hub for global manufacturing, companies looking to diversify their supply chains or be less reliant on China could increasingly look to Vietnam thanks to its fast recovery.

Even though factories are currently reeling from massive cancellations of orders, more production across different sectors could move to Vietnam in the longer term, Julien Brun, Ho Chi Minh City-based managing partner at consultant CEL, told WSJ.

How it works: "Aggressive testing and quarantining appear to be the keys to Vietnam’s success. It has conducted more than 780 tests per confirmed case, a higher figure than New Zealand or Taiwan, showing a vast proportion of its tests are coming back negative."

"The country moved fast to contain any outbreak, too. When a person was confirmed to be infected, many of their close contacts, including those showing no symptoms, were quarantined in state-run facilities or hospitals rather than their homes where they might infect elderly family members."

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Vietnam's economy could boom thanks to fast coronavirus response

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