HSBC maintains Vietnam’s growth forecast
Monday, 30/09/2024 17:03 (GMT+7)
Despite the damage from Typhoon Yagi, HSBC still believes that Vietnam’s economy will grow by 6.5% this year, the most optimistic among international organizations.
The forecast is stated in the “Asian Economics Quarterly – Comin’ for a landing” report recently released by HSBC. This is the highest level of international organizations on the outlook for Vietnam’s economy after Typhoon Yagi.
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| HSBC maintains Vietnam’s growth forecast at 6.5%. (Photo: dantri.com.vn) |
According to statistics from the Ministry of Agriculture and Rural Development, by September 28, Typhoon Yagi had caused 81,500 billion VND damage to Vietnam’s economy. This level is double the statistics of the Ministry of Planning and Investment half a month ago.
HSBC believes that the consequences will last for many more weeks. However, the bank said that the potential positive possibilities can offset the temporary economic losses caused by Super Typhoon Yagi.
On September 24, Singaporean United Overseas Bank (UOB) lowered its growth forecast for Vietnam this year due to Typhoon Yagi, from 6% to 5.9%. UOB expects the impact of the storm will be felt more clearly in the late third quarter and early fourth quarter in the North. Meanwhile, on September 25, ADB maintained its growth forecast at 6%.
HSBC noted that the domestic sector is recovering more slowly than initially expected, with retail sales growth still below the pre-pandemic trend. Encouragingly, the government has put in place measures to support a wide range of domestic sectors that are expected to shore up confidence with time.
Environment tax cuts on fuel and value-added tax cuts for certain goods and services will last until year-end 2024, while the revised Land Law effective from August will buttress the outlook for real estate./.
BTA