Vietnam inflation remains under control: HSBC

By Phan Ca
Fri, May 13, 2022 | 6:45 pm GMT+7
Standard Chartered forecasted Vietnam’s inflation at 4.2% in 2022. Photo courtesy of BRGMart.

Standard Chartered forecasted Vietnam’s inflation at 4.2% in 2022. Photo courtesy of BRGMart.

Despite surging oil and raw material prices, Vietnam's inflation may be well under control this year, at 3.7%, below the central bank’s target of 4%, according to HSBC.

The inflation pressure remains at a low level compared to other ASEAN countries, climbing only 0.2% from April and 2.6% year-on-year, the bank said in a report.

HSBC attributed the low rate to lower transport costs stemming from the April decline in global oil prices and Vietnam’s reduced environmental protection tax. Meanwhile, food costs fell 0.1% from last month as prices of domestic agricultural goods remain stable, unlike other regional countries.

However, prices in several sectors like education, services, and retail have risen. The cost of housing and building materials climbed by 0.6% against March, reflecting higher utility and rental expenses as laborers return to cities post pandemic.

The creditor noted that volatility in the U.S. and China has worsened trade hurdles. The shift in U.S. demand from products to services post pandemic will have an impact on Vietnam's exports.

The supply chain disruptions caused by China's lockdown could also harm Vietnam's exports. As China accounts for 30% of Vietnam's imports, the former's transport congestion would impede the latter's future export growth.

Given China's zero-covid policy, raw material security would be a major problem for Vietnam's manufacturers, HSBC added.

Maybank Kim Eng Securities predicted Vietnam’s inflation at 4% in 2022, given the surging demand induced by economic reopening, supply pressures stemming from the ongoing Russia-Ukraine war and China’s lockdown, or even supply shocks like Indonesia's palm oil export ban.

In April, Standard Chartered forecast Vietnam’s inflation in 2022 and 2023 at 4.2% and 5.5% respectively, due to supply-side factors including rising commodity prices, especially given the current global geopolitical tension.

Nguyen Bich Lam, former head of the General Statistics Office, on Thursday said he expected Vietnam's inflation to be 4-4.5% in 2022, which could exceed 5% in 2023 in case high inflation rates persist in its key partner economies like the U.S., the EU, and South Korea.

Comments (0)
  • Read More
Chinese firms seek to develop smart urban areas in Vietnam

Chinese firms seek to develop smart urban areas in Vietnam

Hong Kong-headquartered CCC Infrastructure Co. and Shenzhen-based Hero Group wish to implement real estate projects in Vietnam, including investments in smart urban areas in the northern province of Bac Ninh and the southern province of Tay Ninh.

Real Estate - Wed, July 16, 2025 | 10:25 pm GMT+7

Construction starts on Hoa Nhon Industrial Park in central Vietnam city Danang

Construction starts on Hoa Nhon Industrial Park in central Vietnam city Danang

Local investor Sai Gon-Da Nang Investment JSC (SDN) has started construction on the Hoa Nhon Industrial Park (IP) which covers 24.75 ha in the central city of Danang.

Companies - Wed, July 16, 2025 | 8:34 pm GMT+7

US starts anti-circumvention probe into aluminum containers imported from Vietnam

US starts anti-circumvention probe into aluminum containers imported from Vietnam

The U.S. Department of Commerce (DOC) has initiated anti-circumvention investigations into disposable aluminum containers, pans, trays, and lids imported from Vietnam and Thailand, according to the Trade Remedies Authority of Vietnam under the Ministry of Industry and Trade.

Companies - Wed, July 16, 2025 | 8:27 pm GMT+7

Vietnamese billionaire-backed VinSpeed raises capital to $573 mln

Vietnamese billionaire-backed VinSpeed raises capital to $573 mln

VinSpeed High-Speed Rail Investment and Development JSC, where Vietnamese billionaire Pham Nhat Vuong holds a controlling stake, has raised its capital from VND6 trillion to VND15 trillion ($573.5 million).

Infrastructure - Wed, July 16, 2025 | 4:33 pm GMT+7

Vietnam's airport operator ACV to issue 1.4 bln shares in record dividend

Vietnam's airport operator ACV to issue 1.4 bln shares in record dividend

State-owned Airports Corporation of Vietnam (ACV) plans to issue over 1.4 billion shares as stock dividends at a 64.58% ratio, its all-time high.

Companies - Wed, July 16, 2025 | 3:44 pm GMT+7

Vietnam seeks economic expansion at 8.3-8.5% this year: Prime Minister

Vietnam seeks economic expansion at 8.3-8.5% this year: Prime Minister

Vietnam needs to achieve a GDP growth rate of about 8.3-8.5% this year, creating momentum to reach a double-digit level in the 2026-2030 period, said Prime Minister Pham Minh Chinh.

Economy - Wed, July 16, 2025 | 3:00 pm GMT+7

Vietnam targets $4.5 bln in cashew exports for 2025

Vietnam targets $4.5 bln in cashew exports for 2025

Vietnam is aiming to export cashews worth $4.5 billion in 2025, up 2.7% year-on-year, according to the Ministry of Agriculture and Environment. To hit this target, the sector must generate around $2.2 billion in the second half.

Companies - Wed, July 16, 2025 | 1:31 pm GMT+7

Indonesia sees great opportunities to boost exports to Europe

Indonesia sees great opportunities to boost exports to Europe

The Indonesian Chamber of Commerce and Industry (Kadin) expressed optimism that the Indonesia-EU Comprehensive Economic Partnership Agreement (IEU-CEPA) will boost trade between the two sides.

Southeast Asia - Wed, July 16, 2025 | 1:24 pm GMT+7

Malaysia tightens export controls on US-origin AI chips

Malaysia tightens export controls on US-origin AI chips

The Malaysian Ministry of Investment, Trade and Industry (MITI) has announced that all exports, transhipment, and transit of high-performance artificial intelligence (AI) chips originating from the United States will require a Strategic Trade Permit under the Strategic Trade Act 2010 (STA 2010).

Southeast Asia - Wed, July 16, 2025 | 1:21 pm GMT+7

Auto manufacturing project in central Vietnam raises investment by over $810 mln

Auto manufacturing project in central Vietnam raises investment by over $810 mln

Vietnamese automaker Kim Long Motor Hue JSC (Kim Long Motor) has received approval from Hue authorities to raise investment in its automotive manufacturing and assembly complex in the central city by VND21.18 trillion ($809.94 million).

Industries - Wed, July 16, 2025 | 12:40 pm GMT+7

State capital at FPT Telecom transferred to Vietnam's Ministry of Public Security

State capital at FPT Telecom transferred to Vietnam's Ministry of Public Security

Vietnam's Ministry of Public Security has assumed the role of representing the state ownership at FPT Telecom, after taking over MobiFone in February.

Companies - Wed, July 16, 2025 | 12:12 pm GMT+7

Vietnam's steel giant Hoa Sen surpasses full-year profit target by 29% after 9 months

Vietnam's steel giant Hoa Sen surpasses full-year profit target by 29% after 9 months

Hoa Sen Group (HSG), one of Vietnam’s leading steelmakers, reported a net profit of VND647 billion ($24.8 million) for the first nine months of its fiscal year starting October 2024, exceeding its full-year target set under an optimistic scenario by 29%.

Companies - Wed, July 16, 2025 | 8:17 am GMT+7

Northern Vietnam city receives $15.6 bln in pledged investment capital post-merger

Northern Vietnam city receives $15.6 bln in pledged investment capital post-merger

Over $15.6 billion in investment capital was committed for the northern port city of Hai Phong on Tuesday, a record high.

Industries - Tue, July 15, 2025 | 11:12 pm GMT+7

Honda cements Vietnam motorbike market dominance with 10% sales growth

Honda cements Vietnam motorbike market dominance with 10% sales growth

Honda Vietnam (HVN) reported a 10% year-on-year increase in motorcycle sales to nearly 2.3 million units in fiscal year 2025, which ended on March 31, according to the company’s annual report.

Companies - Tue, July 15, 2025 | 5:42 pm GMT+7

Foreign investors net buy over $497 mln on Vietnam's stock market from July 1-15

Foreign investors net buy over $497 mln on Vietnam's stock market from July 1-15

VN-Index, which represents the Ho Chi Minh Stock Exchange, dropped by 9.77 points to 1,460.8 on Tuesday, ending its seven-session gaining streak.

Finance - Tue, July 15, 2025 | 5:13 pm GMT+7

UPS eyes opportunities in Vietnam's free trade zone, airport projects

UPS eyes opportunities in Vietnam's free trade zone, airport projects

Leading global shipping and logistics firm UPS is eyeing business opportunities at the Danang city-based free trade zone and the Long Thanh International Airport in Dong Nai province.

Economy - Tue, July 15, 2025 | 3:58 pm GMT+7