Hsbc

Prospect of possible trade deficit in upcoming months and the impacts from current Covid-19 pandemic in Vietnam would pose pressure on the USD/VND exchange rate.

Vietnam is now ideally placed to attract additional foreign investment from the UK, the fifth largest global investor, said Tim Evans, CEO of HSBC Vietnam.

Elevated consumer leverage could drag down future consumer spending, especially as labor market conditions have been severely impacted by the pandemic.

The benchmark Vn-Index rose 4.1% in April and is up 12.4% year-to-date, outperforming the global emerging markets (GEMs), the Asia ex-Japan, and frontier market indices.

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.

From two large-cap stocks with a market cap of more than US$5 billion in 2015 in the Vietnam market as a whole, there are now 11.

While there are several upside risks, moderating food prices should keep Vietnam’s inflation under control.

Vietnam is on track to remain the fastest-growing economy among major countries in ASEAN.

The success of Samsung and Intel has led to other tech giants, such as Google and LG, shifting their supply chain to Vietnam.

Thanks to its successful Covid-19 containment, Vietnam saw one of the highest GDP growth rates in the world in 2020.