It seems that nearly every day there are news articles about Evergrande and its impact on the Chinese economy. Understandably, several clients have asked us if this type of crisis could happen in Vietnam and if the current situation will have much impact here. In today’s piece, Michael Kokalari, Chief Economist at VinaCapital, shares his research and insights on how China’s policy and regulatory environment enabled the Evergrande crisis and how and why the rules are very different in Vietnam.
Dutycast is the creator of a tool that eases the cross-border e-commerce experience for shoppers in Vietnam and beyond by providing transparency around final prices, duties, taxes, and related logistics expenses.
In our last Insights piece, we noted that Vietnam is shifting away from a “Zero Covid” approach to “Living with COVID” and plans to gradually lift restrictions in the coming weeks and months. In today’s Insight, Michael Kokalari, VinaCapital’s Chief Economist, shares his views on sectors that will benefit from the gradual re-opening of the economy. The VNI is up 22.36% YTD, though not every sector has enjoyed stellar returns; focusing on sector and stock selection will be critical to benefitting from the economic rebound that will follow the re-opening.
On 13 September 2021, VinaCapital Ventures, the technology investment platform of VinaCapital Group, announced that it has invested in GlobalCare, an insurtech company that provides solutions for the sales and administrative processes for insurance agencies and business partners selling non-life insurance policies.
By now you are likely aware of the lengthy lockdowns in effect in most cities in Vietnam and the significant restrictions in Ho Chi Minh City. The international press has written about the restrictions and their impact on both economic output and society overall. Nevertheless, it is encouraging to see the pace of vaccination accelerate in Vietnam and in HCMC specifically. In the last few weeks, certain officials have also signaled a willingness to move away from the previous “zero covid” approach that had worked so well prior to this outbreak, and we are encouraged by how the government and businesses have been able to adapt to this evolving situation. In today’s insight, VinaCapital’s Chief Economist, Michael Kokalari, touches on this potential shift in approach and shares a few anecdotes on how companies have adapted their business models to succeed in this environment.