HSBC upbeat on Vietnam’s economy
Hai made the statement during an HSBC Annual Business event themed “Step into the Future”, updating marketplace information and discussing Vietnam’s economic prospects.
“We are bullish for Vietnam’s economic growth in the short to medium term and cautiously optimistic for the long term as it is dependent on the progress of our economic reforms,” Hai said.
“Reform is the only option and we do not have much time,” he said, adding that Vietnam’s engagement in key regional initiatives like the ASEAN Economic Community (AEC), the Regional Comprehensive Economic Partnership (RCEP), and EU-Vietnam FTA helps to accelerate the reform process.
Vietnam’s economy is likely to grow by only 6% this year, HSBC said in its latest report, revising its previous forecast down from 6.4%.
The country’s GDP grew 6.2% in the second quarter, driven by gains in both the industrial and service sectors.
This was higher than HSBC’s forecast of 5.9%, but the bank has still reined in its 2017 growth forecast due to the country’s sluggish first quarter.
The credit growth rate reached 7.54% at the end of June. In early July, the State Bank of Vietnam (SBV) reduced its lending interest rate by 0.25% to 6.25% for the first time in three years to boost economic growth, as Vietnamese companies still rely heavily on bank loans.
“We do not expect any further easing by the SBV this year,” Hai said.
Foreign direct investment (FDI) in the first six months was estimated at US$7.7 billion, up 6.5% over the same period of 2016.
The manufacturing industry attracted 66.7% of total foreign investment, followed by the mining sector at 10.6%.
“With new factories commencing operation this year, we expect FDI to drive further gains in Vietnam’s global export market share”, Hai said.
Forecasting the trend of global economic growth, Douglas Lippoldt, Chief Trade Economist at HSBC Global Research, said there were signs that the global trade situation is improving.
Most of Vietnam’s top 10 export markets, including the US, China, Japan and the Republic of Korea, are expected to improve in the 2017-2018 period, compared to 2016, Lippoldt said.
Increasing import demand in these leading markets would offer plenty of opportunities for Vietnam, he added.
However, there are still particular challenges that Vietnam has to face, such as turbulence and uncertainty in global trade policy, together with rising protectionism in some developed countries including the US, he said, adding that further trade liberalisation is needed to support the upturn.
Related News
Enhance the core values of the national brand
15:36 | 02/05/2024 Import-Export
Wood exports started well
13:26 | 20/04/2024 Import-Export
Leverage to increase the scale of Vietnam - Laos trade turnover
10:51 | 15/04/2024 Import-Export
Vietnam-China trade reaches over US$ 27 billion
09:29 | 10/04/2024 Import-Export
Latest News
Dien Bien Phu Victory shows strength of intelligence, public consensus: Officer
15:37 | 06/05/2024 Headlines
Vietnam acts to seize opportunity to join global semiconductor supply
15:33 | 06/05/2024 Headlines
Vietnam improving readiness to attract foreign investment: official
16:30 | 05/05/2024 Headlines
Green logistics helps firms obtain sustainable, comprehensive development: Insiders
16:29 | 05/05/2024 Headlines
More News
Việt Nam has many opportunities to improve labour productivity: expert
15:14 | 04/05/2024 Headlines
PM presides over Government’s regular meeting
15:06 | 04/05/2024 Headlines
Ample room for Việt Nam-Thailand cooperation in new economic sectors: official
14:50 | 03/05/2024 Headlines
Exports, FDI remain Vietnam’s bright spots: HSBC
17:16 | 02/05/2024 Headlines
Growth engines rev up in first four months
17:12 | 02/05/2024 Headlines
Vietnam fulfills Chairmanship of Asia Pacific Group at UN for April
19:38 | 01/05/2024 Headlines
Startups gradually mature in international markets
08:22 | 01/05/2024 Headlines
Việt Nam to promote local tourism
13:37 | 30/04/2024 Headlines
April 30 Victory – Glorious milestone in national history
13:34 | 30/04/2024 Headlines
Your care
Dien Bien Phu Victory shows strength of intelligence, public consensus: Officer
15:37 | 06/05/2024 Headlines
Vietnam acts to seize opportunity to join global semiconductor supply
15:33 | 06/05/2024 Headlines
Vietnam improving readiness to attract foreign investment: official
16:30 | 05/05/2024 Headlines
Green logistics helps firms obtain sustainable, comprehensive development: Insiders
16:29 | 05/05/2024 Headlines
Việt Nam has many opportunities to improve labour productivity: expert
15:14 | 04/05/2024 Headlines