Fitch Solutions

A GDP growth of 5.8% in 2021, nearly double the 2.9% growth last year, would boost credit demand.

Gas demand is expected to rise from about 9.7 billion cubic meters (bcm) in 2020 to above 25.3bcm in 2030, while influx of LNG helps to counter the decline in domestic production.

As uncertainties has led to HSBC revising down Vietnam’s GDP growth forecast in 2021 to 6.6%, the bank expected a strong rebound to 8.5% next year.

Key goals include continued strong economic growth, driven by manufacturing, and supported by a further integration into global supply chains through the pursuit of trade pacts and export market diversification.

Although foreign medicines are likely to dominate in the near future, domestic companies have begun investing in research & development (R&D) activities to build up infrastructures that meet international standards.

A recovery in consumer spending in Vietnam this year is in line with Fitch Solutions’ forecast that the country’s economy will grow by a real rate of 8.6% year-on-year over 2021 from 2.91% in the previous year.

With this performance, Vietnam has delivered one of the highest growth (rates) in a year where the rest of the world were in deep recessions.

Real estate sales will be another key driver of credit growth, as apartment supply and sales are likely to pick up in 2021.

Fitch Solutions holds a more optimistic view on Vietnam’s economic rebound in 2021, with its real GDP growth forecast at 8.6%, against the government’s 6.5% target.

Across the first half of 2020, the government approved an additional 91 wind energy projects, onshore and offshore, with a total capacity of over 7GW.