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Vietnam Readies for Tentative Economic Rebound as Coronavirus Caseload Stays
Low

Ralph Jennings

   TAIPEI, TAIWAN - Vietnamese officials are preparing for a limited
   economic revival as their coronavirus caseload stays low.

   Despite its land border and close trade relationship with China,
   Vietnam reports only 85 widely dispersed coronavirus cases, and it
   sometimes goes for days with no new cases.

   The government is rolling out incentives now to revive companies
   including export manufacturers, a backbone of the economy that has
   grown around 6% per year since 2012, although the borders are largely
   sealed to inbound travelers.

   "Materials are starting to come in and [factories] picked up a little
   bit, but the real concern they have is tourism and foreign flow, so
   they're really tightening that up," said Mike Lynch, managing director
   with SSI Institutional Brokerage in Ho Chi Minh City.

   As with countries elsewhere in Southeast Asia, Vietnam is offering tax
   breaks, extending tax due dates and allowing delayed land-use fee
   payments to companies affected by the outbreak, business consultancy
   Dezan Shira & Associates said in an online briefing Tuesday.

   The central bank cut its benchmark refinance 1 percentage point Tuesday
   to stimulate business activity.

   "This is all they can do in response to the virus outbreak of trying to
   mitigate the impact of the outbreak on their economy," said Song Seng
   Wun, a Southeast Asia regional economist in the private banking unit of
   CIMB in Singapore. "It's about helping to minimize disruption and
   saving jobs."

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