HSBC forecasts Vietnam’s economic slowdown in 2019
A production line at the Dinh Vu Polyester Fibre Plant in the northern city of Hai Phong.(Photo: VNA)
It said average inflation would be 3.1 percent, meeting the central bank’s target of ‘below 4 percent’.
The GDP growth in the first quarter is estimated at 6.8 percent, down from 7.3 percent a year ago. Manufacturing industry contributed the most to the growth while the services sector continued to outperform. The Export growth in the period was the lowest in the last nine years.
HSBC said the economy still shows strong signs of growth. In March, the Purchasing Managers' Index (PMI) rose, manufacturing and new export orders increased steadily.
The industry remains optimistic based on the likelihood of improved demand and investment.
Foreign direct investment (FDI) increased steadily since the beginning of the year, and is expected to sustain domestic growth despite external difficulties.
Meanwhile, low inflation will enable the central bank to further focus on growth.
The Government is expected to continue with reform of health-related services.
Manufacturing is expected to remain strong this year after growing at 13.1 percent in the first quarter and contributing 2.5 percentage points to Q1 growth. This was its highest contribution last year.
Domestic demand remained strong as growth continued in the wholesale, retail and transportation sectors.
The main negative in the first quarter was the slowdown in the growth of the financial sector as credit growth slowed since the second half of 2018 to control inflation.
Related News
Wood exports started well
13:26 | 20/04/2024 Import-Export
Leverage to increase the scale of Vietnam - Laos trade turnover
10:51 | 15/04/2024 Import-Export
Vietnam-China trade reaches over US$ 27 billion
09:29 | 10/04/2024 Import-Export
How more than 6 tons of smuggled gold transported to Vietnam?
07:49 | 05/04/2024 Anti-Smuggling
Latest News
Standard Chartered revises down Vietnam’s GDP growth forecast in 2024 to 6%
13:51 | 25/04/2024 Headlines
Investor confidence gains traction on improved business climate
13:46 | 25/04/2024 Headlines
Vietnam's exports to Canada lead among CPTPP countries
09:41 | 25/04/2024 Headlines
Many new regulations aim to drastically remove the IUU "Yellow Card"
15:36 | 24/04/2024 Headlines
More News
PM chairs meeting of national committee for digital transformation
13:42 | 24/04/2024 Headlines
Seize the golden opportunity as retail giants look for supplies in Vietnam
10:34 | 24/04/2024 Headlines
Government’s action programme cracks down on illegal fishing
13:53 | 23/04/2024 Headlines
PM calls on ASEAN to pen strategic development vision
13:50 | 23/04/2024 Headlines
Forum to discuss new initiatives on ASEAN future vision: Deputy FM
15:13 | 22/04/2024 Headlines
Investors play a key role in developing the industrial park system
10:38 | 22/04/2024 Headlines
Green transformation and ESG practice to participate in the global competition
18:11 | 21/04/2024 Headlines
Factors influencing Vietnam’s FMCG market
18:06 | 21/04/2024 Headlines
Shrimp exports to major markets bounce back
17:57 | 21/04/2024 Headlines
Your care
Standard Chartered revises down Vietnam’s GDP growth forecast in 2024 to 6%
13:51 | 25/04/2024 Headlines
Investor confidence gains traction on improved business climate
13:46 | 25/04/2024 Headlines
Vietnam's exports to Canada lead among CPTPP countries
09:41 | 25/04/2024 Headlines
Many new regulations aim to drastically remove the IUU "Yellow Card"
15:36 | 24/04/2024 Headlines
PM chairs meeting of national committee for digital transformation
13:42 | 24/04/2024 Headlines