Although external factors reduces Vietnam's growth potential, European businesses in Vietnam still believe in the prospects of this market, especially green development.
The affirmation of Vietnam's long-term foreign-currency issuer default rating reflects the country’s continued strong medium-term growth prospects, despite the Covid-19 pandemic and the global economic spillovers, and strong external finance metrics relative to peers.
Helping ease logistics constraints, continued testing and vaccination and encouraging labor mobility should be priorities, according to World Bank’s recommendations.
HSBC’s forecast for the country's GDP growth this year has been amended to 5.1 per cent, reflecting the severe impact of the latest Covid-19 outbreak.
HSBC have recently trimmed Vietnam’s 2021 growth forecast from 6.6 per cent to 6.1 per cent, reflecting the impact of the recent outbreak. That said, once Vietnam is able to contain Covid-19, it should regain its momentum quickly.
HSBC expects rising housing prices to constrain the SBV’s ability to deliver any further rate cuts.
IFC will work with Hanoi to formulate a new-generation FDI strategy and assist the city in diversifying its funding sources.
More competitive land cost as well as lower occupancy rate are making emerging industrial areas in surrounding provinces become more attractive to investors and developers.
A possible deceleration in 2020 growth of Vietnam's main export markets would weigh on its growth.
If Vietnamese businesses know how to seize the opportunity from EVIPA and EVFTA they will succeed in investment cooperation with EU investors.
