HSBC discusses Vietnam's role in supply chain relocation and outlined essential strategies for the country to enhance its appeal for attracting and retaining FDI.
According to HSBC, Vietnam is not immune to a notable global trade slowdown – in other words, “pay-back” time has arrived.
Signs are now suggesting that it may be time for Vietnam’s external sector to brace for a bumpy road ahead, according to HSBC’s latest report.
The initial target of $375 million was upsized to $600 million on the back of strong market response.
HSBC Vietnam recently gave Dong Hai Joint Stock Company of Ben Tre (DOHACO) a VND200 billion short term green trade loan, further expanding its green strategy in the paper manufacturing.
.jpg)
Vietnam is recovering strongly with the economy is shifting from survival mode to growth mode. However, if Vietnam is to reach its full potential in the coming years, it will have to effectively navigate a number of global mega-trends that will shape its future, according to CEO of HSBC Vietnam Tim Evans.
Despite the optimism when Vietnam saw a rosy start to 2022, it is facing multiple challenges given elevated global energy prices, HSBC said in its latest report.
Companies in different economic sectors has shown a strong shift towards sustainable development, paving the way towards the realisation of Vietnam's net zero targets by 2025.
HSBC remains positive about the prospects of Vietnam’s stock market in 2022 as well as in the long term. HSBC Global Research forecasts VN-Index will reach 1,850 points in 2022.
In support of the Vietnam Government’s aspiring climate goals and COP26 commitment to become a net zero economy by 2050, HSBC Vietnam has announced its commitment to arranging up to $12 billions of direct and indirect sustainable financing for Vietnam, and the corporate sector in Vietnam by 2030.
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.
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.
