Speaking at the “Market Outlook: Vietnam Today, Tomorrow and Beyond” conference held by HSBC on October 25, HSBC Vietnam General Director Tim Evans said Vietnam will still strive to pursue its economic goals despite the global challenges. The bank has therefore raised its forecast for 2022 GDP growth to 7.6 per cent.

GDP increased 13.67 per cent in the third quarter compared to the same period last year, when the economy was severely affected by Covid-19. Growth came in at 8.83 per cent in the first nine months; the highest for eleven years.

Regarding the difficulties Vietnam is now facing, Mr. Alain Cany, President of Jardines Matheson Vietnam and Chairman of the European Chamber of Commerce in Vietnam (EuroCham), said China still has a Zero-Covid policy in place, and up to 55 per cent of Vietnam’s textile and garment materials come from the northern neighbor, posing problems for local manufacturing.

He also emphasized that investor confidence around the world fell in the third quarter. The European Business Confidence Index in Vietnam fell to 62 points out of 100, but remains relatively positive.

The global economy is still likely to see many unpredictable fluctuations. The World Bank (WB) therefore lowered its global growth forecast for 2022 to 2.8 per cent recently.

In the context of global uncertainties, Mr. Cany said the outlook for Vietnam’s economy is relatively positive and growth of 7.2 per cent is expected. Production for export and FDI, he added, are two factors boosting economic growth.

He offered many recommendations for Vietnam to attract more investors, stimulate private investment, and promote the economy. The first is to help businesses attract investment, exchange knowledge, and transfer technology in a competitive global environment. The second is to accelerate the green transition by both public and private investors.