HSBC confirms Vietnam’s positive outlook

Buoyed by a strong economy and excited by their international prospects, Vietnamese businesses are anticipating a bright future, according to the latest “HSBC Navigator: Now, Next and How” report.
hsbc confirms vietnams positive outlook

A shopper inspects vegetables at a Co.opmart supermarket in HCMC. HSBC has found that the vast majority of Vietnamese firms expect their sales to grow over the next year – PHOTO: THANH HOA

The global survey, which polled 9,131 businesses in 35 markets, found that nearly all Vietnamese businesses (97%) believe their sales will grow over the next year; significantly higher than the global and Asia-Pacific averages of 79% and 77%, respectively.

Some 39% of businesses in Vietnam are classified as “high-growth firms,” meaning they foresee achieving at least 15% growth over the next year, nearly double the number of high-growth businesses globally (22%). The mid-term view in Vietnam is even brighter with 100% of firms expecting sales to grow over the next five years.

“From an international trade perspective, Vietnam is one of the most optimistic countries globally and justifiably so,” said Tim Evans, chief executive officer at HSBC Vietnam.

Evans noted that the domestic economy is in a good place, growing to a 10-year high of 7.1% in 2018 and bolstered by the continued strong momentum in 2019 with third-quarter growth reaching 7.31%.

“Middle-class income and consumption are increasing and the manufacturing sector continues to go from strength to strength, while the service sector is providing additional positive impetus to strong underlying economic growth. Vietnam remains well-poised to make substantial gains from international trade in the years ahead,” he added.

Investing in innovation and sustainability

The survey found that Vietnamese firms also see beyond the bottom line when it comes to the positive effects of international trade. Over the next five years, 98% believe it will drive innovation, compared with 80% globally, while 96% suggest it will provide new business opportunities (79% globally) and 95% believe it will improve efficiency (78% globally).

More than one-third of firms surveyed (32%) are already exploring digital technologies to enhance their supply chains to accelerate their speed to market and to move closer to the end consumer.

As the shortage of skilled labor continues to be a deterrent for foreign investors, businesses in Vietnam are improving the quality of their products and services and investing in new skills among their workforce.

Vietnamese companies are also increasingly recognizing the importance of sustainability as a factor that drives the long-term viability of their business and as a way to attract and retain talent.

More companies in Vietnam (28%) believe their expected sales growth will be supported by making their business sustainable than any of the 35 markets surveyed in the Navigator report.

Global partnerships unlock new opportunities

Over the last three years, businesses in Vietnam have become more aware of the global emergence of protectionism. More than four-fifths (87%) of those surveyed say governments are becoming more protective of domestic businesses, compared with 78% last year and 67% the year before.

However, like many companies around the world, 72% of Vietnamese firms believe they are gaining more than they are losing as a result of protectionism, compared with 57% globally and 56% in the Asia-Pacific region.

Only one in 10 complain that they are losing more than they gain, lower than their peers globally and in the Asia-Pacific region at 16% and 17%, respectively.

“Vietnamese firms are increasingly aware of how international trade will help shape the country’s future, making Vietnam more integrated with the global economy, more advanced from a technology perspective and, overall, an even more dynamic economy,” remarked Evans.

To counter geopolitical risks and protectionism, businesses are seeking out joint ventures and taking more of their business online. Sourcing locally and securing a supply of raw materials and energy are also mitigating factors, according to the report.

Source: Saigon Times

Related News

How does the Fed

How does the Fed's interest rate cut affect Vietnam?

VCN - In the latest meeting of the Federal Open Market Committee (FOMC), the Fed decided to cut interest rates by 50 basis points to a range of 4.75%-5%. Analysts have given different perspectives on this decision.
Important step to soon upgrade stock market

Important step to soon upgrade stock market

VCN - According to experts, the Ministry of Finance's issuance of Circular No. 68/2024/TT-BTC dated September 18, 2024 is an important step in the process towards the goal of improving the quality of the Vietnam’s stock market.
Vietnam still primarily relies on processing and manufacturing with limited automation integration

Vietnam still primarily relies on processing and manufacturing with limited automation integration

VCN - Vietnam needs to cultivate domestic enterprises that are large-scale, possess international competitiveness, boast established brands, and can serve as cornerstones in leading the industrialization and modernization process.
Vietnam to achieve credit rating as set target

Vietnam to achieve credit rating as set target

VCN - With the current credit rating scale, Vietnam is getting closer to the target of raising the investment rating grade by 2030 set out in the National Credit Rating Improvement Project by 2030.

Latest News

PM arrives in Laos for 44th, 45th ASEAN Summits

PM arrives in Laos for 44th, 45th ASEAN Summits

Prime Minister Pham Minh Chinh and a high-ranking delegation of Vietnam arrived at Wattay International Airport in Vientiane on October 8, beginning his trip to Laos to attend the 44th and 45th ASEAN Summits and Related Summits.
Timely decisions will bring about many innovations

Timely decisions will bring about many innovations

VCN - Speaking to reporters of Customs Magazine, economic expert, Associate Professor, Dr. Dinh Trong Thinh (photo) emphasized that the amendment and supplementation of 5 laws: Law on Public Investment, Law on Planning, Law on Investment, Law on Public-Private Partnership Investment and Law on Bidding will be an important policy lever to promote economic growth, help stabilize the macro economy, especially in the current period when the world economy is experiencing many fluctuations.
Vietnam, Tunisia promote trade cooperation

Vietnam, Tunisia promote trade cooperation

The Vietnam Trade Office in Algeria and Tunisia last week coordinated with the Tunisian Union of Industry, Trade and Handicrafts (UTICA) to organise a conference to connect Vietnamese businesses and their peers in in Tunis.
Vietnam welcomes over 12.7 million foreign tourists in nine months

Vietnam welcomes over 12.7 million foreign tourists in nine months

Vietnam welcome nearly 1.3 million international visitors in September, according to the latest report from the General Statistics Office (GSO).

More News

Prime Minister presides over Cabinet’s regular meeting

Prime Minister presides over Cabinet’s regular meeting

Prime Minister Pham Minh Chinh urged the acceleration of public investment disbursement while chairing a regular Cabinet meeting, which was connected online with 63 provinces and centrally-run cities on October 7.
Risks for the economy when cash flow has not yet been put in to production and business

Risks for the economy when cash flow has not yet been put in to production and business

VCN - Investment channels in Vietnam have a lot of potential, but financial and banking expert Dr. Nguyen Tri Hieu, Director of the Institute for Research and Development of Global Financial and Real Estate Markets, said that cash flow into production and business is still modest, leading to risks for the economy.
Vietnam suggests ways to promote multilateralism at Francophonie Summit

Vietnam suggests ways to promote multilateralism at Francophonie Summit

Party General Secretary and State President To Lam attended official sessions and delivered an important speech at the 19th Francophonie Summit in Paris on October 5.
Top leader meets with Vietnamese community in France

Top leader meets with Vietnamese community in France

Party General Secretary and State President To Lam had a meeting with the Vietnamese community in France on October 5 (local time), as part of the leader's trip to attend the 19th Francophonie Summit and pay an official visit to France.
Standardising fruit quality can open up new markets for Vietnam: Insiders

Standardising fruit quality can open up new markets for Vietnam: Insiders

There is plenty of room for Vietnamese fruit and vegetables to enter more stringent markets such as the US, Australia, and the EU by focusing on high-quality fruit, accurate origin certificates, and food safety standards, according to insiders.
Support policies needed for businesses to recover after the super typhoon No. 3

Support policies needed for businesses to recover after the super typhoon No. 3

VCN - Super Typhoon No. 3 has left severe consequences. The livelihoods of the people and the operations of businesses have been significantly affected, making timely and appropriate support policies from regulatory agencies essential.
Top leader

Top leader's visit to create momentum for lifting Vietnam - France strategic partnership: Ambassador

The official visit to France by General Secretary of the Communist Party of Vietnam Central Committee and State President To Lam is an important milestone which will create new momentum and open up a new stage for elevating the two countries’ strategic partnership to a new height, said Vietnamese Ambassador to France Dinh Toan Thang.
Vietnam, France boost cooperation in public services, administrative modernisation

Vietnam, France boost cooperation in public services, administrative modernisation

Vietnamese Minister of Home Affairs Pham Thi Thanh Tra and French Minister for Public Servants, Simplification and Transformation of Public Action Guillaume Kasbarian discussed cooperation programmes and signed bilateral cooperation documents their a meeting on October 4.
Vietnam’s FDI attraction wins big

Vietnam’s FDI attraction wins big

Foreign investors have been disbursing funds and accelerating investments in factories to establish long-term operations in Vietnam, reflected through the recent inauguration and groundbreaking of several projects across Vietnam.
Read More

Your care

Latest Most read
PM arrives in Laos for 44th, 45th ASEAN Summits

PM arrives in Laos for 44th, 45th ASEAN Summits

Prime Minister Pham Minh Chinh and a high-ranking delegation of Vietnam arrived at Wattay International Airport in Vientiane on October 8, beginning his trip to Laos to attend the 44th and 45th ASEAN Summits and Related Summits.
Timely decisions will bring about many innovations

Timely decisions will bring about many innovations

VCN - Speaking to reporters of Customs Magazine, economic expert, Associate Professor, Dr. Dinh Trong Thinh (photo) emphasized that the amendment and supplementation of 5 laws: Law on Public Investment, Law on Planning, Law on Investment, Law on Public-Pr
Vietnam, Tunisia promote trade cooperation

Vietnam, Tunisia promote trade cooperation

The Vietnam Trade Office in Algeria and Tunisia last week coordinated with the Tunisian Union of Industry, Trade and Handicrafts (UTICA) to organise a conference to connect Vietnamese businesses and their peers in in Tunis.
Vietnam welcomes over 12.7 million foreign tourists in nine months

Vietnam welcomes over 12.7 million foreign tourists in nine months

Vietnam welcome nearly 1.3 million international visitors in September, according to the latest report from the General Statistics Office (GSO).
Prime Minister presides over Cabinet’s regular meeting

Prime Minister presides over Cabinet’s regular meeting

Prime Minister Pham Minh Chinh urged the acceleration of public investment disbursement while chairing a regular Cabinet meeting, which was connected online with 63 provinces and centrally-run cities on October 7.
Mobile Version