Vietnam to grow at 6.2%: HSBC
HSBC has revised down Vietnam’s GDP forecast by 0.3% to 6.2% due to impacts of the global fuel shortage.

An aerial view of Ho Chi Minh City's center. Photo by The Investor/Trong Hieu.
Surging global fuel prices have led to an increase in Vietnam's fuel expenses, negatively impacting the country’s trade balance. In March, crude oil imports more than doubled, while gasoline imports quadrupled year-on-year, the bank reported.
Vietnam may have a current account deficit for the second year in a row, albeit at a modest level of only 0.2% of GDP. The government last year posted a current account deficit of 1.1% of GDP, for the first time in four years, it said.
Given the external issues, HSBC slightly increased its forecast for the U.S. dollar/Vietnamese dong exchange rate in the short term, though the forecast by the end of the year remains at VND22,800.
The creditor pointed out that suppressed personal consumption recovery induced by rising living costs, as well as a weak labor market, have slowed retail sales growth, with only a 2.5% increase in Q1 year-on-year.
Vietnam's trade surplus in Q1 narrowed to a minimum of $800 million albeit a strong recovery in exports. Imports grew 16% and half of them were electronic components.
Despite a slight downgrade of Vietnam's GDP, HSBC believed the country remains one of the region's economies with outstanding growth this year, in line with the government’s plan of 6-6.5%.
Fitch Ratings in a release on Monday stated that it expects Vietnam’s GDP growth to accelerate to 6.1% in 2022 and 6.3% in 2023 from 2.6% in 2021, led by a recovery in domestic demand, strong exports and high FDI inflows, particularly in the manufacturing sector.
ADB in March anticipated Vietnam’s growth rate to converge to its pre-pandemic level of 6.5-7% in 2022 thanks to “fast vaccination progress, sustained global economic recovery, and certain key drivers of economic growth that include the economy’s digital transformation.” In the same month, IMF estimated the country’s economic expansion at 6.6%.
According to HSBC, Vietnam had a solid start in 2022, with GDP expanding 5.03% year-on-year in Q1, owing to a large-scale rebound.
Vietnam's General Statistics Office (GSO) data shows that the industrial sector in Q1 grew 8.36% from Q1/2021, accounting for 51.08% of the overall growth, while services climbed by 4.58% and made up 43.16%. Agriculture rose 2.45%, contributing 5.76%.
Vietnam fully reopened its market to international travelers on March 15, paving the way for tourism industry resurgence.
HSBC maintains its recently revised upwardly of 3.7% inflation forecast, which is still below the State Bank of Vietnam’s 4% target.
"Fortunately, given that food costs and price pressures induced by rising demand have been managed, Vietnam's inflation remains under control compared to other emerging economies," the report said.
However, the bank believed that the possibility of rising inflation will signal a tightened monetary policy. This explained why it raised its projection for Q3 by 50 basis points, rather than Q4 as previously forecast. Consequently, the regulatory interest rate is expected to grow to 4.5% by the end of 2022.
- Read More
Construction of first locally-owned semiconductor factory begins in Vietnam
CT Semiconductor, a subsidiary of CT Group, has begun the second phase of construction on what is set to become Vietnam’s first semiconductor chip factory fully owned by a domestic company.
Southeast Asia - Tue, May 6, 2025 | 10:50 pm GMT+7
Japanese retailers step up business activities in Vietnam
Japanese retailers Aeon and Sumitomo have planned to expand their networks in Vietnam, Nikkei Asia reported on Monday.
Southeast Asia - Tue, May 6, 2025 | 10:39 pm GMT+7
Vietnam's budget carrier Vietjet sees 24% profit hike in Q1 on int’l growth surge
Vietjet Aviation JSC (HoSE: VJC) reported a 24% year-over-year increase in consolidated profit for Q1, driven by strong international expansion and operational excellence, reinforcing its leadership in regional connectivity.
Southeast Asia - Tue, May 6, 2025 | 10:35 pm GMT+7
Northern Vietnam city Hai Phong claims top spot for first time in Provincial Competitiveness Index
The coastal city of Hai Phong has, for the first time, topped the 2024 Provincial Competitiveness Index (PCI) with a score of 74.84, marking a significant milestone in its economic governance journey.
Southeast Asia - Tue, May 6, 2025 | 10:20 pm GMT+7
Malaysia initiates tariff talks with US
Malaysia is pushing forward tariff negotiations with the U.S., while implementing various policies to support local industries and strengthening efforts to seek new export markets.
Southeast Asia - Tue, May 6, 2025 | 10:12 pm GMT+7
ASEAN’s largest economy slows to lowest growth since Q3/2021
Official data released recently indicates that Indonesia's economic growth decelerated in Q1 due to weakened domestic consumption.
Southeast Asia - Tue, May 6, 2025 | 9:59 pm GMT+7
Vietnam's agri major BAF reports record livestock profit since listing
BAF Vietnam Agriculture JSC in Q1 posted its highest livestock profit since listing in late 2021, thanks to a surge in pig output and revenue that nearly doubled year-over-year.
Companies - Tue, May 6, 2025 | 9:36 pm GMT+7
Amkor views Vietnam 'strong market' despite US tariff uncertainties
Amkor Technology, a U.S.-headquartered semiconductor firm, sees Vietnam a strong market in the mid and long term despite tariff uncertainties under the Trump administration, said an executive.
Investing - Tue, May 6, 2025 | 4:40 pm GMT+7
Over $7.7 bln in Vietnam's private placement corporate bonds to mature in last 3 quarters
More than VND200 trillion ($7.7 billion) in privately-placed corporate bonds will mature in the final three quarters of this year, with the real estate sector accounting for half, according to independent credit rating provider S&I Ratings.
Finance - Tue, May 6, 2025 | 4:16 pm GMT+7
Sumitomo to halve equity interest in $2.58 bln thermal power plant in central Vietnam
Sumitomo has decided to transfer 50% of the Japanese giant's equity interest in its wholly-owned operator of the $2.58 billion Van Phong 1 coal-fired power plant in Vietnam’s central province of Khanh Hoa.
Energy - Tue, May 6, 2025 | 3:54 pm GMT+7
Singapore's CapitaLand Development forms strategic partnership with Vietnam's Vinhomes
CapitaLand Development has expanded in Vietnam with two major moves - a strategic collaboration agreement with leading local developer Vinhomes and the unveiling of The Fullton, a $800 million low-rise residential project in Hung Yen province.
Real Estate - Tue, May 6, 2025 | 2:56 pm GMT+7
Vietnam's disbursed FDI in 4 months posts five-year record high
Registered foreign direct investment (FDI) in Vietnam hit $13.82 billion in the first four months of the year, up 39.9%, while disbursed capital reached $6.74 billion, up 7.3% and marking a record high in five years.
Economy - Tue, May 6, 2025 | 2:12 pm GMT+7
Vietnam's Politburo requests prioritizing administrative measures to handle economic violations, instead of criminal prosecution
The Politburo, Vietnam's highest decision-making body, has ordered amendments to legal regulations to ensure that administrative measures are prioritized in handling civil and economic cases.
Economy - Tue, May 6, 2025 | 12:30 pm GMT+7
EC postpones Vietnam’s seafood inspection until year end
The European Commission (EC) has delayed its fifth inspection of Vietnam's efforts to combat illegal, unreported and unregulated (IUU) fishing to the end of 2025, according to the Ministry of Agriculture and Environment (MAE).
Southeast Asia - Tue, May 6, 2025 | 8:53 am GMT+7
Thailand lowers growth forecast for 2025
The Thai Ministry of Finance has cut its forecast for the country’s economic growth this year to 2.1% from 3%, saying that the impact of U.S. tariffs and a global slowdown would weigh on Southeast Asia's second-largest economy.
Southeast Asia - Tue, May 6, 2025 | 8:49 am GMT+7
Vietnam’s top lighting manufacturer Rang Dong posts 48% drop in Q1 profit
Hanoi-based Rang Dong Light Source & Vacuum Flask JSC, a veteran in Vietnam’s consumer goods sector, reported a 48% decline in Q1 post-tax profit to nearly VND101 billion ($3.9 million), blaming intensifying competition from Chinese imports and foreign-invested enterprises.
Companies - Tue, May 6, 2025 | 8:17 am GMT+7