An electronic product factory of LG Electronics Vietnam (Photo: VNA)

Hanoi (VNA) – Investment and individual consumption will fuel Vietnam’s economic growth in the year, according to Pham Hong Hai, Chief Executive Officer for Vietnam at HSBC Holdings.

Although consumption is foreseen to decline in 2017, it will guide economic growth in Southeast Asia. Vietnam and the Philippine are said to have largest consumer spending in the year, Hai was quoted by Thoi bao kinh te Viet Nam (Vietnam Economic Times).

Hai believed that the production sector will also play a crucial role, spurred by its steady development, and as evidenced by the stable purchasing managers index (PMI) in the first two months of the year.

Meanwhile, Fiachra MacCana, Managing Director of Research Department and Co-head of Institutional Division of the Ho Chi Minh City Securities Corporation (HSC) opinioned that Vietnam’s economy will be on upswing thanks to robust signs in the market, naming sectors that control the country’s economic growth in 2017.

According to the HSC’s securities expert, promising sectors like household appliances, consumption goods, logistics and garments are on recovery. Sectors such as financial and technological services and agricultural products are enjoying rosy expansion.

The other sectors are production and pharmaceuticals which see their growth declining, and real estate, which could see a sale slow-down in the year despite myriads of projects drawing public attention.

Although Vietnam is a rising star in the region and a safe investment destination for foreign enterprises, the country is facing numerous difficulties and challenges, Hai stressed.

He pointed out that external challenges come from the unsound environment in Asia caused by the world’s receding trade. Meanwhile, internal challenges are high public debt and inflation making a comeback.

He suggested that banking sector shake-up should be sped up while strict supervision over real estate should receive attention.-VNA