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Coronavirus pandemic
ChinaDiplomacy

Vietnam counts the economic cost of the Covid-19 epidemic

  • Manufacturers in the Southeast Asian nation are struggling to secure the raw materials they need to remain operational
  • Hanoi relies on China for about 30 per cent of its imports

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Vietnam is feeling the economic impact of the coronavirus outbreak. Photo: Reuters
Keegan Elmer
Vietnam may have reported only 16 confirmed cases of Covid-19 but the deadly coronavirus is still having a significant impact on the Southeast Asian nation’s economy, as factories struggle to secure the raw materials they need from neighbouring China.

“Vietnam is suffering economically, but less than China,” said Adam McCarty, chief economist at Mekong Economics in Hanoi.

“Schools remain closed, tourists are too few, and workers, maybe 20 per cent, are underemployed due to virus-caused declines in demand and Chinese inputs,” he said.

Since the outbreak began at the end of last year, Vietnam has introduced a number of measures to help contain its spread, including extending the Lunar New Year school holiday in dozens of cities and halting trade with China at many of its northern border stations.

Some checkpoints reopened for a limited period on Thursday, though all truck drivers entering the country from China are now required to wear gloves and masks, and are prohibited from leaving their cabs at any time, according to Vietnamese media reports.

State-owned Vietnam Railways was reported as saying its revenue in the first 19 days of February fell by about US$2.8 million from the equivalent period of last year, partly as a result of having to pay refunds on almost 40,000 unused tickets.

Vietnam halted trade with China at many of its border stations to help contain the deadly virus. Photo: Reuters
Vietnam halted trade with China at many of its border stations to help contain the deadly virus. Photo: Reuters
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