The new "Asian tiger": how China's problems helped the Vietnamese economy

The Vietnamese economy shows good growth rates: according to forecasts, the country's GDP in 2022 will increase by 8-8.5%. While neighboring China is in recession, Vietnam is actively recovering from the pandemic.

Vietnam is one of the fastest growing economies in Southeast Asia. In 2022, the largest international corporations, from South Korean Samsung Electronics to Danish Lego, began building huge factories in this country. Apple plans to transfer production of Apple Watch and MacBook there. The manufacturing industry is actively developing in the republic, retail trade and the tourism industry are being restored. Vietnam has every chance of becoming the new "Asian tiger" after Korea, Singapore, Taiwan and Hong Kong, said Brian Lee Shun Rong, an economist at Maybank, a leading banking group in Southeast Asia.

The International Monetary Fund attributes the rapid economic recovery in Vietnam in the first half of 2022 to the easing of restrictions related to the COVID-19 pandemic . The economy is also benefiting from the recession in China, according to Moody's. “Due to the political situation in China, investments have been redirected to Vietnam and other countries in Southeast Asia,” experts explain.