HSBC has lifted its 2024 gross domestic product (GDP) growth forecast for Vietnam to 7.0% from 6.5% after the country recorded stronger-than-expected growth in Q3 despite the devastation left by Typhoon Yagi.

HSBC has maintained its GDP growth forecast for Vietnam at 6.5% for both 2024 and 2025 in its “Asian Economics Quarterly – Comin’ for a landing” report.

HSBC has raised its forecast for Vietnam's GDP growth this year to 6.5%, as compared with the previous projection of 6%, following the country's better-than-expected performance in the first half.

There are signs that the recovery is becoming more broad-based in Viet Nam, with marginal improvements in sectors like textiles and footwear, as well as machinery, highlighted HSBC in its report Viet Nam at a glance released on March 7.

November marks the third consecutive month of Viet Nam seeing export growth on a year-on-year basis, noted HSBC in its report Viet Nam at a glance released on December 6.

Vietnam’s economy has passed its trough, staging a modest recovery with stronger-than-expected growth of 5.3% in the third quarter, but upside risks to inflation have resurfaced, prompting the upgrade of 2023 average inflation forecast to 3.4%.

Despite Vietnam’s GDP in the second quarter rising by a higher-than-expected pace of 4.1% on-year, HSBC reduced the growth forecast for 2023 to 5.0% from the previous figure of 5.2% due to mounting broad-based challenges.

HSBC Vietnam launched a report entitled “The State Bank of Vietnam - Third time’s a charm?”, with an expectation that the SBV will deliver one more 50bp rate cut in this easing cycle, sometime in the third quarter 2023, to further support growth.

Agriculture has long been the backbone of Vietnam’s economy for a number of comparative advantages, such as cultivated land, forest cover, sea territories, tropical climate, and available and cost effective labour.

HSBC has raised Vietnam’s growth forecast from 7.6% to 8.1% this year but revised down the forecast for next year from 6% to 5.8%.

Vietnam continues to strengthen its brand by accelerating national vaccine roll out program for its people and being one of the first markets to reopen in the post-pandemic period, told Tim Evans, CEO of HSBC Vietnam.

HSBC has lowered its forecast on Vietnam’s inflation rate in 2022 to 3.5% from its earlier prediction of 3.7% due to the stable domestic food price, according to a report released on June 14.

Vietnam’s stock market is expected to continue to grow, helped by strong economic growth and increasing local liquidity. The positive outlook will attract foreign investors back to the market, according to HSBC.

Vietnam posted the fastest growth in Asia in 2020 and will once again be among the most outstanding performers in the region this year, according to the Hong Kong Shanghai Banking Corporation (HSBC).

With fewer concerns about currency and external stability, Vietnam’s central bank is likely to be more comfortable with delivering interest rate cuts to support growth.

A handful of international financial groups have cut their ties with coal-fired power plants – a sustainability move as investors and the public demand strong action on climate change.

Interim chief executive Noel Quinn reveals extensive job cuts and restructuring to shake up the bank.

Rising foreign investment flow in Vietnam has prompted overseas banks to expand operation in the country.

In 2020, the country’s domestic demand is set to benefit from generally supportive financial conditions amid low inflation and robust capital flows.