Topic: growth

Google, Temasek, and Bain & Company report paints a rosy picture for Vietnam’s digital economy.

Ho Chi Minh City’s trade is still recording impressive growth despite Vietnam being affected by the troublesome global situation. A report from the city’s Department of Statistics shows that export turnover was $4.156 billion in September, an increase of 0.3 per cent compared to August, while import turnover in the first nine months was $48.764 billion, up 10.3 per cent year-on-year.

The State Bank of Vietnam (SBV) has officially adjusted the credit limit for four banks - Vietcombank, HDBank, MB, and VPBank - in a bid to support weak credit institutions under government policy. An additional VND83.5 trillion ($3.49 billion) will be injected into the economy following the move. The credit growth limit at 18 banks has now reached 13.6 per cent.

With impressive growth posted in the third quarter, United Overseas Bank (UOB) has raised its growth forecast for Vietnam in 2022 to 8.2 per cent; significantly higher than its previous forecast of 7 per cent. UOB believes that, in 2023, Vietnam’s economy will be affected to a certain degree in the context of demand in main markets continuing to slow down. Growth next year is therefore expected to be 6.6 per cent.

The government and international organizations are optimistic about Vietnam’s economic growth in 2022 and 2023.

GSO puts growth in the third quarter at 13.67 per cent year-on-year, significantly higher than the 10-11 per cent forecast previously.

According to the General Statistics Office, the Index of Industrial Production (IIP) increased 12.12 per cent year-on-year in the third quarter of 2022 and 9.63 per cent in the first nine months. Processing and manufacturing continued to be a driving force of growth, increasing 10.69 per cent and contributing 2.74 per cent to higher added value in the economy.

Vietnam’s insurance technology (insurtech) market, which accounts for only 2-3 per cent of total revenue in the insurance market, has a lot of potential to develop. A representative from one insurtech company said the local market is expected to soon reach into the tens of billions of dollars, and the comprehensive application of digitalization in the insurance industry will drive sustainable market growth.

Banking stocks, which account for the largest proportion of Vietnam Holding’s portfolio, have performed well and the fund expects this to continue into 2023 given attractive valuations and steady growth. Banking stocks account for 35 per cent of its investment, followed by industry and services with 18 per cent, retail 17 per cent, real estate 16 per cent, and technology 11 per cent.

According to the United Nations Development Program (UNDP), Vietnam’s Human Development Index (HDI) was 0.703 in 2021, almost equal to the 2019 result of 0.704. In the global HDI rankings, Vietnam climbed two places, from 117th out of 189 countries in 2019 to 115th out of 191 countries in 2021. Its Gender Inequality Index (GII) continued to improve last year, reaching 0.296 and ranking 71st out of 170 countries. The UNDP said Vietnam will face many challenges in the future, such as climate change and economic development depending on global growth.