Vietnam is on track to remain the fastest-growing economy among major countries in ASEAN.
Tighter restrictions in early 2021 as a result of Covid-19 outbreak have weighed on Vietnam’s economic activity, resulting a GDP growth forecast of 7% this year, lower than the previously estimated 7.6%, and then moderate to 6.5% in 2022, according to HSBC’s report.
A flare-up in Covid-19 infections has also taken its toll in other member countries of ASEAN, leading to HSBC’s revision of growth forecast for ASEAN overall from 5.6% down to 5% in 2021. In this context, Vietnam is expected to remain the fastest-growing economy with estimated GDP growth of 7% among major countries in ASEAN this year, significantly higher than the likes of Malaysia (6.7%), the Philippines (6.5%), Singapore (6.5%), Indonesia (4.9%), and Thailand (3.6%).
In the Asia-Pacific region, India is set to record a strong recovery from a contraction of 6.3% in 2020 to a growth of 11.2%, the highest in the region, followed by China at 8.5% in second, while Vietnam and Sri Lanka shared the third place at 7%.
According to HSBC’s latest forecast, almost all economies in Asia should reach their pre-pandemic level by the end of 2021, if they have not already. The only exceptions are Japan and Thailand (next year), and the Philippines (beyond 2022).
In the 2021-2022 period, Vietnam’s inflation would continue to stay under control at respective rates of 3% and 3.5%, lower than the government’s target of 4%.
Given the positive outlook for economic growth in Asia, HSBC predicted higher global growth forecasts for 2021 and 2022 at 3.8% and 3.6%, respectively, representing 0.2 and 0.1 percentage points higher than previous estimates.
This year, the government aims for an economic growth of 6.5%, 0.5 percentage points higher than the target set by the National Assembly.
Other News
- FDI in Vietnam on the rise in Q1
- Vietnam takes strong actions to attract semiconductor investment
- Vietnam's favorable factors hold promise for real estate growth
- US urged to recognize Vietnam as a market economy
- MICE tourism: Vietnam's lucrative “golden market” unveiled
- Vietnamese data center market to hit $1.26 billion by 2030
- Vietnam seeks IAEA assistance in training skilled workforce in nuclear energy industry
- Hanoi hosts National Quality Award 2024
- Foreign investors to develop $2 billion chip manufacturing project in Vietnam
- Vietnam receives US$51.5 million from World Bank for forest emission reduction
Trending
-
Hanoi, a city of music in the making
-
Vietnam urges respect for international law in East Sea
-
Hanoi kicks off communication contest on Dien Bien Phu victory
-
French education group Odyssey keen on strengthening cooperation with Hanoi
-
Hanoi, Shanghai strengthen investment cooperation
-
UOB Painting of the Year Award opens doors to the world for Vietnamese artists
-
Grapefruit blossom perfume Hanoi's air
-
MICE tourism: Vietnam's lucrative “golden market” unveiled
-
Vietnam: Sleep Tourism on the rise