In a research released on April 13, the firm noted that Vietnam’s goods exports were up 6.9% in 2020, a moderation from 8.5% growth in 2019, but still a solid achievement given world trade fell 7.8%.
Vietnam also further strengthened its world market share to 1.6% of goods exports in 2020, up from 1.4% in 2019 and 0.5% in 2010, as a substantial rise in foreign direct investment (FDI) has increased the country’s role in global manufacturing supply chains.
According to Oxford Economics, Vietnam was able to take full advantage of the work-from-home-related global boom in demand for computers, other electronics, and furniture. These tailwinds will likely fade this year as an easing in restrictions will allow production in other countries to normalise, it said.
It expected Vietnam’s export manufacturing sector will be buoyed by a rebound in world trade this year. It forecast that as coronavirus-related restrictions are rolled back and vaccines become more widely available, world trade in real terms will surge nearly 10% this year.
This is in part because of the US’s US$1.9 trillion stimulus package, which will also likely bolster US demand for Vietnamese exports, it added.
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