Vietnam has minimised the economic damage from Covid-19 and is the only country in SouthEast Asia on track for growth this year. Its economy is expected to grow 2.4% this year, according to latest figures from the International Monetary Fund.

The IMF credited “decisive steps to contain the health and economic fallout from COVID-19” for the country’s success. Vietnam has had only 1,288 Covid-19 cases and 35 deaths.

The IMF is predicting a strong economic recovery in 2021, with growth projected to strengthen to 6.5% “as normalisation of domestic and foreign economic activity continues.”

Although Vietnam lacks the health infrastructure of many wealthier countries, it has been widely praised for its public health measures, which quickly brought numbers under control. It was quick to develop testing kits, and used a combination of strategic testing, aggressive contact tracing to help control numbers.

The country has seen slower growth this year and its once-thriving tourism sector has taken a particularly bad hit, but it has avoided the worst economic effects of the pandemic.

 A number of factors have cushioned the blow, according to Michael Kokalari, chief economist for Vinacapital, a Vietnam-focused investment company. Perhaps the most unexpected windfall has come from the huge increase in the number of people working from home globally.

Vietnam’s manufacturing sector has grown enormously over the past decade because businesses have started to look elsewhere as labour costs in China increased.

The ongoing US-China trade war has also made China a less attractive place to manufacture, with a number of tariffs in place on exports.

Many multinationals have started operating in Vietnam, including global technology leaders like Apple and Samsung. Apple now has plans to manufacture its high-end Airpods studio earphone in Vietnam.