HSBC predicts Viet Nam’s GDP growth to reach 6.8% in 2022

VGP – Viet Nam's economy can regain GDP growth rate at 6.8 percent in 2022 mainly thanks to strong FDI investment in the manufacturing sector, thereby promoting exports, especially in the context that the free trade agreements Viet Nam has signed in the past two years are starting to “bear fruit."

December 26, 2021 4:38 PM GMT+7

According to General Director of HSBC Viet Nam Tim Evans, after a few months of experiencing difficulties due to strict distancing measures, the economic situation is becoming more and more stable.

Business activity has been bustling again in the past few months and consumer confidence is gradually returning despite many obstacles as workers have not returned to factories. Viet Nam's supply chain has been impacted by widespread labor shortages, especially in labor-intensive sectors.

In particular, the PMI, which reflects the confidence level of manufacturers, rose to 52.2 in November. This shows that business conditions have improved for the second consecutive month after a period of decline due to the fourth outbreak starting in April.

Specifically, Viet Nam receives the highest value of investment in renewable energy in the ASEAN region and has the most potential for renewable energy development with growth driven by foreign investment, emphasized General Director of HSBC Viet Nam.

In order to support the development of green finance, the State Bank of Viet Nam (SBV) has recently developed a draft circular guiding the implementation of environmental risk management in credit granting activities of credit institutions and foreign bank branches, effective January 1, 2022.

In terms of banking digitization, 2021 is an important milestone for the banking industry. In 2021, McKinsey conducted a personal financial services survey on digital banking usage behavior of about 20,000 urban banking customers in 15 Asia-Pacific markets, including Viet Nam.

The results show that the percentage of Vietnamese customers using digital banking tools at least once a month has doubled between 2017 and 2021, from 41 percent to 82 percent. Fintech and e-wallet usage in Viet Nam has increase from 16 percent in 2017 to 56 percent in 2021.

In addition, according to Ernst & Young, 42 percent of Vietnamese banks are ready for digital transformation, and 28 percent have implemented a digital strategy in their business operations.

By Hoang Ha