Data indicates very strong growth in 2021
Covid Crisis is still slowing down many economies, but it is likely, that in the year 2021 we will see strong growth globally due to last year’s poor numbers. There is already evidence of the robust growth in Vietnam’s exports in the first six weeks of the year. These numbers indicate very strong growth for the whole year. Vietnam’s exports were 38.57 billion USD, up +36% from the last year. The strongest growth was in exports to China.
Maybe this was a sign of what lies ahead: The IMAX-theaters’ earnings during the TET-holidays in China were up 43% compared to the year 2019. The businesses most affected with Covid-19-restrictions may surprise with exceptionally solid numbers when people are finally able to travel, eat out, go to sports events and enjoy entertainment.
The daily turnover in Vietnam’s stock market has been extremely high for several months already. The turnover and the spike we’ve seen in VN-index are thanks to the local investors. In January the foreign investors were net sellers for 74 million USD. In February the tide turned and the foreign investors have been net buyers for 62 million USD. We expect this trend to continue.
We also expect that the Vietnamese listed companies’ Q1 earnings reports in April will indicate strong earnings growth for many businesses in the year 2021.