HSBC has raised its forecast for Vietnam’s economic growth this year to 6.9%, from the previous prediction of 6.6%, which is possibly the fastest pace in the region.
Vietnam's economy is predicted to grow by 6.9% this year, according to the latest Vietnam At A Glance report by HSBC. (Photo: VNA)
HCM City (VNA) – HSBC hasraised its forecast for Vietnam’s economic growth this year to 6.9%, from theprevious prediction of 6.6%, which is possibly the fastest pace in the region.
In the Vietnam At A Glance report inJuly, HSBC Global Research noted that decreasing risks posed by the Omicronvariant and eased restrictions have paved the way for Vietnam to return to thenormality.
Thanks to widespread recovery, thecountry recorded an impressive GDP growth rate of 7.7% in the second quarter comparedto the same period last year. The service sector, which has suffered fromsevere economic impacts, have bounced back strongly while manufacturing hascontinued growing and exports hit historic highs.
However, the growth forecast for 2023was revised down to 6.3% from 6.7% due to growing risks, especially in theenergy sector, according to the bank.
HSBC Global Research pointed outgrowing impacts of soaring energy prices. Escalating goods prices have led to tradedeficit in Q2 and may worsen the current account situation, which has not alreadybeen optimistic. On the other hand, though household consumption has recoveredsteadily, people’s budgets may suffer from high oil prices, thus deceleratingthe recent recovery speed.
Vietnam’sinflation is forecast to stand at about 3.5% this year, but it may surpass the ceiling of 4% betweenQ4 of 2022 and Q2 of 2023, requiring the State Bank of Vietnam begin normalising themonetary policy.
According to the report, Vietnam hasbenefited from economy reopening, and domestic demand has returned whileexternal drivers remain favourable. However, it is necessary to stay alert toincreasing growth risks, especially the ones posed by surging energy prices./.
Covid-19 was largely brought under control in the first 5 months of this year and the economic recovery programme was implemented thoroughly around the country, driving socio-economic development in a host of fields. The CPI, meanwhile, rose 2.25 percent year-on-year in the period.
Vietnam is targeting to control public debt below 60 percent of gross domestic product (GDP) by 2030 to ensure debt safety and national financial security.
Vietnam’s Gross Domestic Product (GDP) in the second quarter of this year was estimated to increase 7.72% year-on-year, higher than the growth rates in the same quarters during the 2011-2021 period, the General Statistics Office (GSO) reported at a press conference on June 29.
The Singapore-based United Overseas Bank (UOB) has revised up Vietnam’s 2022 GDP growth forecast to 7.0% from 6.5%, assuming no further severe domestic disruptions from COVID-19, and projected growth of around 7.6 – 7.8% in the second half of the year (H2).
China’s Laoling city, in coordination with VINEXAD, hosted a series of events in Ho Chi Minh City from August 7-9 to seek trade and economic cooperation with Vietnam.
Vietnamese Ambassador to Cambodia Nguyen Minh Vu led a delegation to Mondulkiri, Ratanakiri, and Kratie provinces from August 5-8, aiming to deepen economic ties and support Vietnamese businesses operating in Cambodia’s northeastern region.
Party General Secretary To Lam’s upcoming state visit to the Republic of Korea (RoK) is expected to mark a new milestone in the bilateral relationship, creating fresh momentum for trade and investment cooperation between the two countries.
In the context of the growing global digital economy, digital transformation and the promotion of e-commerce are key drivers helping Vietnam boost integration, enhance competitiveness, and expand export markets, according to the Vietnam E-commerce and Digital Economy Agency
Tilapia is considered highly competitive in export markets thanks to its affordability, ease of processing, and appeal across both high-end and mass-market segments.
In the first seven months of the year, Phu Tho attracted an impressive 651.7 million USD in foreign direct investment, including 35 newly licensed projects totaling 119 million USD in registered capital and 45 existing projects with an additional capital of 533 million USD.
Under the agreements, VinEnergo will invest in, install, and operate 43 MWp of rooftop solar power capacity and 45 MWh of BESS capacity across the three plants.
Under a draft to amend and supplement the Government's Decree 125/2020/ND-CP on administrative sanctions for violations of tax and invoice regulations, the Ministry of Finance has proposed classifying the failure to issue invoices into five different levels. Infraction levels will correspond to fines of 1 million VND to 80 million VND, depending on the nature and number of invoicing violations.
A new airline developed and invested by Sun Group — has officially announced a strategic partnership with Amadeus IT Group (Amadeus), one of the world’s leading travel technology companies. This agreement not only lays the foundation for a modern digital infrastructure but also marks a pivotal step in SPA’s global expansion strategy, enabling the airline to access international distribution networks and reach customers worldwide.
Of the total, 107,700 were new firms, with combined registered capital of 928.4 trillion VND (35.4 billion USD), up 10.6% in number and 5.5% in capital compared with the same period last year.
Experts agree that a combination of technology, enforcement, education and cross-border cooperation is essential to protect copyrighted content in Vietnam’s growing digital ecosystem.
Poland is Vietnam’s largest export market in Central and Eastern Europe, with key staples including seafood, textiles, footwear, coffee, and cashew nuts.
Cashless payments are growing at an impressive rate, averaging 30–40% annually. Vietnam’s per capita cashless transaction volume now trails only China, with total value of 295.2 quadrillion VND (11.26 trillion USD), or 26 times of its GDP.
A draft resolution on piloting a digital asset and cryptocurrency market is being developed, aiming to create a broad-enough regulatory sandbox that enables investor participation and provides practical grounds for policy refinement in areas such as risk management and anti-money laundering.
Vietnam's economy is predicted to grow by 6.9% this year, according to the latest Vietnam At A Glance report by HSBC. (Photo: VNA) 
