70th anniversary of Hanoi's Liberation Day Vietnam - Asia 2023 Smart City Summit Hanoi celebrates 15 years of administrative boundary adjustment 12th Vietnam-France decentrialized cooperation conference 31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Home / Economy / Banking & Finance
Standard Chartered expects Vietnam’s recovery to stay strong this year
Phi Nhat 21:24, 2022/08/29
In addition to supply-side factors, demand-side ones might kick in more strongly.

Standard Chartered Bank maintains its GDP growth forecast of 10.8% year on year in the third quarter of 2022 and 3.9% in the fourth quarter, taking 2022 growth to 6.7%.

 Standard Chartered expects Vietnam’s recovery to stay strong in August. Photo: dinhvuport.com.vn

In its latest Global Research report on Vietnam, the UK-based bank said Vietnam's economy will see a continued recovery in August, as the economic revival has shown signs of broadening.

Tim Leelahaphan, economist for Thailand and Vietnam, Standard Chartered Bank, said: “The recovery may accelerate markedly in H2 as tourism reopens after a two-year closure. That said, rising global oil prices may have negative consequences on the economy.” 

According to the UK-based bank, retail sales growth likely continued to accelerate to 60.2% year on year in August from 42.6% in July. Export, import and industrial production growth may have risen to 15.2%, 15.0% and 15.2%, respectively from 8.9%, 3.4% and 11.2% in July. A trade deficit of US$1.4 billion is expected in August, electronics are Vietnam’s largest export category. 

Standard Chartered economists see inflation at 3.0% year on year in August in comparison to 3.2% in July and believe it is under control for now. Price pressures may increase in H2 2022 and 2023. In addition to supply-side factors, demand-side ones might kick in more strongly. 

Standard Chartered Bank expected the State Bank of Vietnam (SBV) to stay vigilant against financial instability. The SBV plans to keep this year’s credit growth target at 14%, despite calls to raise it to ease cash-flow bottlenecks in the property market, according to Governor Nguyen Thi Hong. 

Banks may face greater liquidity risks on excessive lending to the real-estate sector - while 94% of property loans have maturities of 10-25 years, 80% of banks’ deposits are short-term. Vietnam’s credit growth has accelerated this year, it picked up to 9.4% year to date and 16.7% year-over-year in H1, according to SBV. Outstanding lending to the property sector represented about one-fifth of total loans.

RELATED NEWS
TAG: Standard Chartered Vietnam\'s recovery GDP growth
Other news
16:01, 2024/02/26
VCCI hosts 14 international investors to study Vietnam's potential
With a population of 100 million, a young workforce, a stable political system and attractive policies, Vietnam has attracted the interest of many global companies.
15:32, 2024/02/22
Enhanced local trade finance in Vietnam: A potential US$55 billion annual trade boost
International trade is an important driver of productivity, jobs, and development – but to be effective, adequate trade finance is essential.
16:31, 2024/02/15
Vietnam’s corporate bond market could grow to US$100bn: Finance Minister
The Ministry of Finance is expected to establish a separate bond market, strengthen inspection and auditing, and create conditions for businesses to raise capital.
20:08, 2024/02/14
Vietnam’s banking sector set to turn the corner in 2024
The fact that the Vietnamese dong depreciated by a modest 2.9% year on year in 2023 indicated high stability and improved foreign exchange reserves compared to the end of the previous year.
14:02, 2024/02/02
Vietnamese Gov’t remains steadfast in upgrading stock market to emerging status by 2025
The Ministry of Finance is expected to ease pre-transaction deposit requirements for foreign investors this year.
12:06, 2024/01/31
USD/VND exchange rate set to stabilize in second half of 2024
The central bank achieved some success in managing the foreign exchange market as the USD/VND exchange rate maintained a sliding rate of about 3.1% in 2023, despite some periods approaching the VND24,800 threshold.