The University of Social Sciences and Humanities organized a seminar to "offer suggestions" for Vietnam to seize the golden opportunity to become the world's factory.

On October 14th, the University of Social Sciences and Humanities (Vietnam National University, Hanoi) collaborated with the Konrad-Adenauer-Stiftung Foundation, Germany, to organize a hybrid in-person and online seminar entitled: "The Impact of the Covid-19 Pandemic on Global Supply Chains: Policy Implications for Vietnam".

Experts from both within and outside Vietnam discussed the profound impacts of the Covid-19 pandemic on global supply chains, Vietnam's transportation sector, and business operations in the current context, and offered practical recommendations.
 

During the seminar, Associate Professor, Dr. Tran Dinh Thien, former Director of the Vietnam Institute of Economics, stated that the pandemic...Covid-19This has exposed the limitations of the current global supply chain, such as "the global economic dependence on a single point, a single stage, a single locality, making the economy more vulnerable than ever before."

Vietnam has also been affected by the complex developments of the pandemic both globally and domestically. Associate Professor, Dr. Nguyen Anh Tuan, Deputy Director of the Institute for Strategic Diplomatic Studies, Vietnam Diplomatic Academy, argues that because Vietnam has a high degree of integration with the world and a certain degree of dependence on external factors, global fluctuations and supply chain disruptions directly impact Vietnam, with the Covid-19 pandemic being a prime example.

Nevertheless, according to Professor Heribert Dieter of the Institute for International and Security Studies (Germany), Vietnam is currently considered one of the world's manufacturing hubs and is facing a golden opportunity to become the "new global manufacturing factory." He argues that the current shift in global supply chains to diversify and avoid dependence on a single country is creating opportunities for economies like Vietnam and India.
 

Mr. Florian Feyerabend, Head Representative of the Konrad-Adenauer-Stiftung in Vietnam, mentioned an article in a leading German newspaper that analyzed Vietnam's opportunities in the global supply chain. He optimistically stated: "As lockdown measures are lifted and vaccination campaigns are intensified, a new normal will begin with economic dynamics restarted. I believe that Vietnam will always be an attractive destination for foreign investors – especially from Germany as they pursue supply chain diversification."

Mr. Feyerabend also stated that: "Vietnam is Germany's largest trading partner in ASEAN and also a top choice among investment destinations in the region."

Recommendations for Vietnam

Based on the analysis and discussion of the pandemic's impact on supply chains, experts have offered recommendations aimed at effectively addressing pandemic challenges and the overall economic recovery. Specifically, these recommendations include: innovating approaches and thinking about supply chain issues; planning and developing scenarios appropriate to the pandemic situation; and implementing rapid and widespread measures to support post-pandemic recovery.
 

Dr. Tran Toan Thang, Head of the Sectoral and Enterprise Economic Forecasting Department at the National Center for Socio-Economic Information and Forecasting, stated that the Vietnamese government has implemented numerous policy groups to support people and businesses in responding to the pandemic. However, he believes Vietnam needs to do better in implementing these policies to make them more effective. Dr. Thang said the government is designing a growth recovery policy package aimed at improving the economy in the longer term. He also noted that, given the impact of both internal and external factors, the demand for shifting supply chains to Vietnam is "relatively promising," and the question is how Vietnam will seize and implement these opportunities.
 

Meanwhile, expert Nguyen Anh Tuan also offered a series of recommendations for Vietnam. He suggested that Vietnam needs to boost domestic production to replace imports and reduce dependence on foreign countries, or diversify import sources to avoid over-reliance on one or a few specific countries.

Mr. Tuan called for increased production and development of networks for essential goods such as food and medical supplies, while also supporting small and medium-sized enterprises (SMEs), as these will be the force creating jobs and are crucial in economic recovery.
 

Expert Nguyen Anh Tuan also stated that Vietnam needs to develop its workforce, taking advantage of its demographic dividend and improving the skills of its labor force. He believes that in the future, Vietnam needs to be self-sufficient in COVID-19 vaccines to ensure it has the tools to live with COVID-19. An important factor he mentioned is the need to ensure national security, including social and economic security, to guarantee political security.

Concluding the seminar, Professor, Dr. Pham Quang Minh, Editor-in-Chief of the Journal of Social Sciences and Humanities, remarked: "The Covid-19 pandemic showed how closely we are connected and interdependent, but it also showed how divided and isolated we are because of a tiny, invisible virus."