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.
In per-labour-force terms, consumer debt even jumped from 41 per cent of income in 2013 to more than 100 per cent in 2020, according to HSBC.
Although Vietnam can sit on its advantages after Covid-19, the country should not let reforms slip its mind.
A possible deceleration in 2020 growth of Vietnam's main export markets would weigh on its growth.
Vietnam is outperforming its regional peers in terms of exports and can further count on more FDI to come as the result of the ongoing US-China trade tensions. And it all now depends on whether the country is equipped with appropriate capacity to absorb such FDI inflows.
Southeast Asia could provide a beacon of opportunity, given its domestic orientation and long-term growth potential.
The first live blockchain Letter of Credit (LC) has been facilitated between Vietnam’s Duy Tan Plastics and INEOS Styrolution Korea Ltd., marking the pilot digital transformation for trade finance between the two nations.
Many expats moving to Vietnam say they can quickly adjust to the way of life here and feel at home within just few months of arrival.
Businesses across Asia increasingly believe the strongest opportunities for future growth lie in technology, sustainability and developing talent to harness digital advancement, according to HSBC Research.
Publication permit No. 348/GP-BTTTT dated July 19, 2017, granted by the Ministry of Information and Communications of the Socialist Republic of Vietnam
Editor-in-Chief: Nguyen Cao Cuong
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