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| Vietnam has been the fastest growing digital economy in ASEAN. (Photo: VOV) |
Amanda Murphy, Head of Commercial Banking for South and Southeast Asia at HSBC, revealed that the country has become a leading market for the digital industry for both local and international players.
The HSBC think tank pointed out that growth occurring in the nation’s digital economy continues to impress, with last year it contributing 16.5% to GDP with over 1,500 Vietnamese digital technology enterprises gaining revenues from foreign markets, an increase of more than 7% compared to 2022.
She revealed that in a recent survey, 60% of businesses operating in the Vietnamese market indicate that they plan to invest in technology and digitalisation of their existing business, with the focus being on digital payments, e-commerce, and AI. Those companies believe that adopting and enhancing digital services will help them to meet customers’ expectations for digital convenience whilst improving efficiencies.
She noted that capital has become the lifeblood of innovative companies in this context. Against that backdrop, HSBC has enhanced our offering to digital-economy companies, launching a dedicated US$1 billion to the ASEAN Growth Fund that can help to finance platform companies with a proven track record in generating sustainable cash flows, even if they do not meet traditional financing criteria.
“We understand that profitability may not always reflect a company’s potential in its early stages, hence we take a long-term view of potential growth by evaluating companies based on key operating metrics, growth plans and customer-acquisition strategies,” she added.
HSBC economists therefore predict that the economic recovery is serving to drive consumption among an increasingly affluent population of 670 million, as one person enters the middle-income bracket every two seconds on average.
The ASEAN region boasts one of the highest digital penetration rates in the world, while e-commerce passed the US$100 billion revenue mark last year.
“Progressive approaches to financing, and the region’s strong fundamentals will all help drive the growth ambitions of businesses in ASEAN. And Vietnam, as one of the bloc’s members, will definitely benefit,” they stressed.
Standard Chartered revises down Vietnam’s GDP growth forecast in 2024 to 6%
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| Containers being loaded at Cat Lai port in HCM City. (Photo: VNA) |
Standard Chartered Bank has lowered Vietnam’s GDP growth forecast in 2024 to 6% from the previous 6.7% due to lower-than-expected Q1 growth and global trade headwinds, reported Vietnam News Agency.
However, it is still an improvement from 5% in 2023. The country’s Q1 GDP growth moderated to 5.7% (from 6.7% in Q4-2023). The bank lowered Q2 year-on-year growth forecast to 5.3% (from 6.3%) and Q3 to 6%. But Q4 growth is expected to be recovered to 6.7%.
According to Standard Chartered’s economist in its recent macro-economic updates about Vietnam, trade, a key source of growth and investment for Vietnam also faces short and long term challenges. However, Vietnam’s recovery remains intact despite risks. Retail sales growth was still robust in Q1.
Standard Chartered also lowers 2024 inflation forecast to 4.3% from 5.5 % to reflect lower-than-expected Q1 inflation. The bank expects rates to stay on hold at 4.5% until end-Q3 and could be raised by 50 bps in Q4 in response to growth-driven inflation.
“Vietnam is improving its position in global supply chains. Foreign investment continues to be attracted by a favourable investment environment and potential ramp-up of US-China trade tensions,” said Tim Leelahaphan, Economist for Thailand and Vietnam, Standard Chartered. “With economic recovery starting to gain momentum, we think there will be less need to provide monetary policy support”, he added.
According to Tim, there is a balanced view on the Vietnamese given improvements on the external front and reserve rebuilding. Strong export growth provides some support for the currency. Imports point to further gains. The bank forecasts a current account surplus of 3.5% GDP in 2024.
Pangasius exports to UAE increase by 67% in first quarter
In the first quarter of 2024, Vietnam’s pangasius exports to the UAE market reached more than 7 million USD, up 67% year on year.
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| Photo for illustration. (Source: congthuong.vn) |
According to data from the General Department of Customs, in March 2024, Vietnam exported over 2 million USD of pangasius to the United Arab Emirates (UAE), up 62% year on year. Pangasius exports in the first 3 months of this year to this market reached more than 7 million USD, up 67% year on year.
In the first month of this year, this market increased impressively by nearly 2.5 times compared to Vietnamese pangasius imports with nearly 4 million USD. However, export value in the following month immediately decreased by 31% to just over 1.2 million USD.
The Vietnam Association of Seafood Exporters and Producers (VASEP) said that the UAE mainly imported frozen filet products coded HS 0304 from Vietnam with over 2 million USD in March 2024, up 51% year on year and up 81% from the previous month, but down 33% compared to January 2024. This product accounts for 93% of Vietnam’s total pangasius exports to the UAE.
In the first quarter of 2024, this market imported nearly 7 million USD worth of frozen Vietnamese pangasius filets, up 56% over the same period last year.
During the period, the UAE also imported fresh, frozen or dried pangasius (coded 03) and value-added pangasius with a value of 517,000 USD, up 15 times and 152,000 USD, up 62% year on year.
Notably, in March 2022 and 2023, this market has hardly consumed frozen pangasius and value-added pangasius products from Vietnam. However, in March 2024, the UAE imported these two products again with values of 79,000 USD and 75,000 USD respectively.
Vietnam Airlines operates wide-body aircraft on Hanoi - Singapore route
The national flag carrier Vietnam Airlines will operate the "super wide-body aircraft" Boeing 787 during the summer peak period to meet the travel needs of passengers between Vietnam and Singapore.
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| Photo for illustration. (Source: VNA) |
Specifically, from June to July 2024, Vietnam Airlines will operate Boeing 787 wide-body aircraft for the Hanoi-Singapore route and vice versa with a frequency of seven flights a week, increasing passenger capacity by more than 50% per flight compared to narrow-body aircraft.
Earlier, the carrier cooperated with Sentosa Development Corporation, a large Singaporean corporation to stimulate tourism demand, promote destinations in Singapore and Vietnam Airlines’ services, while offering many attractive incentives for visitors.
The modern wide-body aircraft Boeing 787 is capable of transporting up to more than 300 passengers per trip, and is known as a “flying hotel” with a spacious, comfortable and convenient passenger cabin. In addition, larger windows, optimized air humidity and pressure in the passenger cabin are outstanding advantages of this aircraft.
Business class seats on Boeing 787 can recline completely flat for passengers to rest, along with additional amenities such as personal entertainment screens with hundreds of attractive programs, USB ports right at the seats and larger luggage compartments.
Notably, the Boeing 787 is a fuel-efficient aircraft reducing noise and emissions that affect the natural environment.
Moc Chau recognized as national tourist area
The Ministry of Culture, Sports and Tourism has just issued Decision QD-BVHTTDL recognizing Moc Chau Tourist Area in the northwestern province of Son La as a national tourist area.
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| Moc Chau attracts tourists with many beautiful natural scenes and tea hills. (Photo: hanoimoi.vn) |
Moc Chau National Tourist Area is located in two districts of Moc Chau and Van Ho, with an average altitude of 800-1,000m above sea level. Topographic conditions divide Moc Chau into 4 main areas: Plateau, plateau belt, area along the Da River and border area. Each region has its own advantage in shaping unique products.
The central area includes Moc Chau town and Moc Chau Farm town, which plays the role of a driving economic area, where agricultural development and hi-tech application are focused.
The plateau belt area mainly develops commercial agriculture and community tourism. The area along the Da River focuses on developing community tourism and lake tourism.
Finally, the border area is for growing raw materials, medicinal herbs, raising livestock, developing trade at the Long Sap international border gate bordering Laos, developing various types of adventure tourism and mountain climbing, and cultural markets in border areas.
Thanks to its diverse terrain and year-round cool climate, Moc Chau is also known as the "land of fog". The town attracts tourists by its charming natural scenery with green tea hills, and pristine white plum and apricot blossoms in the spring.
Currently, Moc Chau is forming many high-end tourist areas like Bach Long Glass Bridge, recognized by Guinness World Records as the longest glass bridge in the world.
In 2022 and 2023, Moc Chau was honored by the World Travel Award (WTA) as “The world's leading regional natural destination”./.