Vietnam economy regional top performer post pandemic: HSBC
HSBC Global Research expects Vietnam to be among the region's top growing countries thanks to its resilient economic potential and quick return post-Covid.
Vietnam was one of the world’s few countries to record growth in two consecutive years since the Covid-19 pandemic struck. The Southeast Asian economy is expected to continue thriving in the second half of this year, said Ngo Dang Khoa, country head of markets and securities services, HSBC Vietnam.
The country's economic expansion in the first half of the year was 6.42%, higher than the 5.1-5.7% target, official data shows.
According to Khoa, FDI continues to drive Vietnam’s economic success story. The country is among the top two regional recipients of FDI relative to GDP, highlighting its increasing attractiveness.
"In recent years, the economy has turned itself into a rising star among global supply chains, gaining a substantial global market share in sectors like textiles, footwear and consumer electronics. Vietnam has climbed the value chain over the years, growing into a key manufacturing hub for electronics products, attracting stable FDI inflow with its sound macro fundamentals, preferential tax incentives and abundance of relatively cheap and productive labor."

Ho Chi Minh City, Vietnam's largest economic hub, by night. Photo courtesy of Vietnamfocustour.com
The HSBC executive noted that the State Bank of Vietnam has had the Action Plan of the Banking Industry to implement the National Strategic Plan on Green Growth and the Scheme on green bank development in Vietnam by 2030 to drive the growth of green credit and green banking, channeling the funds to environmental projects, promoting green manufacturing, services and consumption.
According to the central bank, as of the end of 2021, 67 financial institutions funded green projects in renewable energy, clean agriculture, textiles and garments, etc. Outstanding green credit accounted for 5% of the country’s total last year, a 0.46% year-on-year increase.
Vietnam’s key growth engine is set to see strong recovery, as the labor shortage continues to ease, Khoa noted. After the lunar New Year holidays in February, over 90% of workers have returned to Ho Chi Minh City. The country’s exports grew 17.3% year-on-year in the first six months.
“All of these point to a steady recovery in Vietnam. Thus, HSBC now expects the economy to grow 6.9% in 2022, up from our previous forecast 6.2% and 6.6%, likely topping the region,” he said.
Despite the optimism, headwinds prevail. In particular, Vietnam is facing multiple challenges given elevated global energy prices, according to Khoa.
“This will increase Vietnam’s energy bills, deteriorating its terms of trade position. Higher oil prices will raise residents’ cost of living, dampening the pace of recovery for private consumption, especially when the labor market has shown signs of recovery.
“Global energy inflation continues to gain pace, pushing domestic petrol prices to new highs. Given elevated global oil prices, we expect the trend to persist, putting upward pressure on inflation.”
Vientam aimed to achieve economic expansion of 7% this year, higher than the previously-set target of 6-6.5%, Minister of Planning and Investment Nguyen Chi Dung told a government meeting in early July.
IMF in early July put its Vietnam GDP forecast at 6%. It expects the country's inflation to be contained at a maximum of 4%, which is the State Bank of Vienam's target.
- Read More
Vietnam plans to spend over $2 bln on US agri imports
Vietnam’s Ministry of Agriculture and Environment is expected to sign MoUs to purchase over $2 billion worth of U.S. agricultural, forestry, and fishery products.
Economy - Tue, June 3, 2025 | 10:01 pm GMT+7
New flight route to help Danang attract more wealthy tourists from Middle East
The new Dubai-Danang flight route has been launched, paving the way for an influx of high-spending travelers from the Middle East and Europe to the central Vietnam city, one of the country's top tourist attractions.
Companies - Tue, June 3, 2025 | 9:13 pm GMT+7
Food giant C.P. Vietnam’s 'diseased' pigs improperly quarantine-stamped: authorities
The widely circulated images of diseased pigs from C.P. Vietnam, a subsidiary of Thailand’s food giant Charoen Pokphand Foods Public Company Limited (CPF), date back to 2022, but the pigs were improperly stamped, Vietnamese authorities stated on Tuesday.
Companies - Tue, June 3, 2025 | 5:36 pm GMT+7
Son Hai Group proposes expanding 263km stretch of Vietnam's North-South Expressway
Vietnam’s Son Hai Group is seeking Prime Minister Pham Minh Chinh's approval to invest in the expansion of a 263-kilometer stretch of the eastern section of the North-South Expressway.
Infrastructure - Tue, June 3, 2025 | 3:53 pm GMT+7
FedEx establishes direct serve in Vietnam on surging demand
FedEx Express Corporation, one of the world’s largest express transportation companies, has transitioned to a direct-serve presence in Vietnam amid the Southeast Asian country’s growing international shipping demand.
Industries - Tue, June 3, 2025 | 2:55 pm GMT+7
Vietnam’s steel giant Hoa Phat to deliver thousands of containers to domestic shipping lines
Vietnam’s largest steelmaker, Hoa Phat Group, will supply thousands of containers to VIMC Container Transport JSC (VIMC Lines) and Vinafco Shipping JSC under recently signed contracts.
Companies - Tue, June 3, 2025 | 12:16 pm GMT+7
Shinhan Bank receives 'Fastest growing SME bank Vietnam 2025' award
South Korea’s Shinhan Bank Vietnam Limited has been named the “Fastest Growing SME Bank Vietnam 2025” by World Economic Magazine (UK).
Companies - Tue, June 3, 2025 | 10:19 am GMT+7
Vietnam’s ‘shrimp king' Minh Phu expects to return to profit in 2025
Minh Phu Seafood Corporation (UPCoM: MPC), Vietnam’s leading shrimp exporter, expects net profit to reach VND997 billion ($38.03 million) this year, reversing the loss in 2024.
Companies - Tue, June 3, 2025 | 8:38 am GMT+7
CMC Corporation breaks ground on $300 mln technology hub in Hanoi
Vietnam's leading technology firm CMC Corporation on Monday broke ground on its $300 million Hanoi CMC Creative Space (CCS Hanoi) project.
Industries - Mon, June 2, 2025 | 11:19 pm GMT+7
Thailand’s industrial output up after 9-month decline
Thailand’s industrial output has turned positive for the first time in nine months, with the automotive sector rebounding after a 21-month slump, said Thai Deputy Finance Minister Paopoom Rojanasakul.
Southeast Asia - Mon, June 2, 2025 | 10:48 pm GMT+7
Singapore, France to expand cooperation in civil nuclear energy, defence technology, AI research
Singapore and France have upgraded their Strategic Partnership signed in 2012 to a Comprehensive Strategic Partnership (CSP), marking Singapore's first CSP with a European country.
Southeast Asia - Mon, June 2, 2025 | 10:47 pm GMT+7
Masan MEATLife stock jumps on continued profit momentum
The ticker of Masan MEATLife (MML), a subsidiary of Vietnamese consumer retail giant Masan Group, jumped by 8.71% to VND31,200 ($1.2) per share on Monday, after it reported profit for the third consecutive quarter in Q1/2025.
Companies - Mon, June 2, 2025 | 10:34 pm GMT+7
Vietnam's VSIP Binh Dinh industrial park seeks to become 'golden destination' for Thai firms
The Becamex VSIP Binh Dinh service-urban-industrial complex in the central province of Binh Dinh is emerging as a promising destination for Thai enterprises, said its developer Becamex Binh Dinh JSC.
Industrial real estate - Mon, June 2, 2025 | 10:24 pm GMT+7
Termination of feed-in-tariff mechanism a major bottleneck in Vietnam’s electricity transition: expert
A major bottleneck in Vietnam’s electricity transition has been the termination of the feed-in-tariff (FIT) mechanism in 2021, with no suitable replacement mechanism in place, according to the director of Hanoi-based Institute of Energy Technology.
Economy - Mon, June 2, 2025 | 4:56 pm GMT+7
Vietnam Vaccine JSC launches high-quality healthcare shop chain
Vietnam Vaccine JSC (VNVC), well known for its vacciation services, on Saturday launched its VNVC Shop, a chain offering safe, high-quality healthcare products from globally recognized brands.
Companies - Mon, June 2, 2025 | 4:05 pm GMT+7
Vietnam heavyweight PV Gas plans $3 bln investment over next 5 years
PV Gas, a subsidiary of state-owned giant Petrovietnam, plans to make "strong investment" over the next five years in areas such as infrastructure and import-distribution of LNG.
Energy - Mon, June 2, 2025 | 2:01 pm GMT+7