Home / Economy / Trade - Service
Vietnam to remain ASEAN's strongest growth performer despite Covid-19 outbreak: HSBC
Ngoc Thuy 15:20, 2020/08/27
Amid global uncertainty, Vietnam continues to attract fresh FDI and remains an exception to a subdued private investment outlook of the Southeast Asian region in recent quarters.

Despite the second Covid-19 outbreak that will likely moderate the pace of third-quarter growth, Vietnam is predicted to remain the strongest growth performer this year in the Southeast Asian region with a GDP growth rate of 2.9%, thanks to effective virus containment, according to HSBC.

 Source: HSBC. 

In fact, the HSBC expected Vietnam would be the only country among six major economies in the region, or ASEAN-6 (Indonesia, Malaysia, the Philippines, Singapore, Thailand, and Vietnam), to record a positive economic growth, and then rebound to over 8.55% in 2021.

In contrast, the ASEAN-6 is predicted to contract 4.4% in 2020. This is ultimately a reflection of the fact that all ASEAN economies except Indonesia announced some form of hard lockdown to combat the virus, stated HSBC’s report.

The lockdowns and corresponding hit to mobility have significantly impacted private consumption, which is the largest component of growth in ASEAN. As a result, this was the main drag on growth in the first half of the year in all the economies, with investment a close second.

 

According to the HSBC, while the region’s private investment outlook has been subdued in recent quarters, owing in part to a moderation in FDI inflows, Vietnam has been an exception. Amid global uncertainty, the economy continues to attract fresh FDI.

A report from the Ministry of Planning and Investment (MPI) revealed that year to August 20, 1,797 new projects have been approved with total registered capital of US$9.73 billion, up 6.6% year-on-year in capital.

The report shows that out of 106 countries and territories investing in Vietnam in the first eight months of 2020, Singapore took the lead with US$6.54 billion, followed by South Korea (US$2.97 billion), and China (US$1.75 billion).

The World Bank in late July predicted Vietnam’s economic growth at 2.8% this year, the world's fifth-fastest-growing economy, while the government targets a growth rate in range of 3 – 4%.

RELATED NEWS
TAG: Vietnam ASEAN covid-19 coronavirus nCoV pandemic GDP growth FDI Thailand Singapore HSBC Malaysia
Other news
21:24, 2022/24/22
US-Vietnam trade turnover hits more than US$111 billion in 2021
Trade has become a pillar of the growing bilateral relationship between the two countries.
05:32, 2022/32/22
Vietnam’s petrol prices surge for second time this year
The latest price adjustment marked the second consecutive price hiking in 2022.
19:11, 2022/11/20
Smoother transactions at Vietnam-China border, Hanoi says
The clogging could happen at anytime during the year and every year due to changes in the Chinese side’s import policy.
15:33, 2022/33/19
Vietnam sets up task force to address trade congestion with China
Risks of further congestion remain due to uncertainties surrounding the Covid-19 situation and limited loading capabilities from both sides.
19:08, 2022/08/17
Trade ministry targets 6-8% export growth in 2022
Assuming Vietnam keeps the current pace of trading growth, the turnover could set a new record and exceed the $700-billion mark in 2022.
21:10, 2022/10/16
Hanoi targets surge in export turnover in 2022
The capital will continue to focus on realizing the dual goal of fighting the Covid-19 pandemic and boosting socio-economic development.