Vietnam can benefit from Free Trade Agreements

The latest report released by the Global Economic Research Division of HSBC showed that Vietnam’s growth forecast this year remains at 7.6%. Inflationary pressure is likely to continue at a moderate level, around 3.3% on average, lower than the 4% ceiling of the State Bank of Vietnam.

HSBC said that in terms of foreign affairs, Vietnam’s commerce will benefit from many FTAs signed in 2020, including EVFTA, RCEP and UKVFTA. Lower tariffs and greater access to major markets will provide comparative advantage for Vietnamese exporters. At the same time, this helps to diversify export destinations of businesses, while FDI inflows into Vietnam continue because the country is an investment destination.

Vietnam has had a hard time with limited financial space for infrastructure, but the Public Private Partnership (PPP) Investment Law passed last year and coming into effect from January 1, 2021 can encourage private participation in large projects.

This month, Vietnam will host the 13th National Party Congress. HSBC is optimistic that, after the congress, economic policy will still be consistent.

Looking back to 2020, the bank affirmed that, thanks to effective disease prevention measures, “Vietnam becomes one of the countries with the highest GDP growth in the world”./.