In addition, Vietnam's GDP growth is expected to reach 2.6% in 2020. Many indicators show that economic activity is regaining a level of momentum that's comparable to the pre-pandemic period.
Specifically, export activity increased by more than 7% in July and August compared to the same period last year. However, the pandemic still remains an obstacle for economic growth. HSBC also forecasted this year's inflation to reach an average of 3.4%.
HSBC believes that Vietnam will benefit from the technology-led recovery and stable foreign direct investment (FDI) inflow in the year to come.
Therefore, the Southeast Asian nation still has a positive outlook with expected economic growth of 8.1 percent next year, compared to the previous projection of 8.5 percent.
“Vietnam’s growth rate this year is still quietly ‘skyrocketing’ and will stand out as the fastest-growing economy in the region by 2021," HSBC added.
HSBC is one of the world’s largest banking and financial service organizations.
