Japan's Toyota factory in Vinh Phuc province. (Photo: VNA)

Vietnam has fared better economically than many countries, but it has not been completely spared, McKinsey said. GDP growth in the first quarter was at its lowest level since 2010, although it was still positive at 3.8%.

This year will no doubt continue to be a challenging one, but Vietnam could expect the strong growth of recent years to return next year, and it will likely see its position as an offshoring location reinforced once the global economy begins to recover.

If Vietnam can continue its record of keeping community transmission of COVID-19 at bay while also making structural shifts to drive growth over the next decade, it could not only recapture its pre-COVID-19 economic position but drive new economic growth, according to McKinsey.

Most international agencies expect Vietnam’s growth trajectory to begin later this year and to accelerate in the next year, with the Asian Development Bank, World Bank, and International Monetary Fund all releasing forecasts of Vietnam’s GDP growth to reach 6.8 to 7.0% in 2021, the firm said.