May 4, 2020 - Economy

Vietnam's economy could boom thanks to fast coronavirus response

People wait in line for free rice in Hanoi.

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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