VIETNAM ON/OFF

— 29.04.2020

The signals of the COVID-19 epidemic from Vietnam have been encouraging this week. People have been able to return to shopping malls and streets. The virus no longer seems to scare the public. Some schools have reopened this week and the rest will open early next week. During April, we have witnessed historically weak economic data in the world, the actual released data has turned worse than anyone ever expected and at the same time also Vietnam’s economic growth has been cooling off quickly. In many ways, it is important to analyze these weak figures and think over what kind of consequences and delayed impact current data may have, but at the same time, it is good to keep in mind the nature of the current economic crisis. The flash collapse was caused by policymakers using the ON/OFF switch for economic activity. At the time, when countries push the ON button again, the readings may also surprise the other way around. A small reference to this can be found in the Vietnam export data to China. Just published data shows, that exports of fruit, vegetables, and fishery products to China increased by + 105% in March from the previous month.