Illustrative image (Source: VNA)
Hanoi (VNA) – Despite a gloom in the Purchasing Managers’ Index (PMI) in the region, Vietnam’s PMI continued to expand, reaching a ten-month high of 52.7 in May from 52.3 in the previous month.

According to the latest report on the prospects of Vietnam's market released by t he Hong Kong and Shanghai Banking Corporation (HSBC), economic indicators in the second quarter of this year showed a strong recovery of the national economy.

The number of new orders rose sharply, indicating that manufacturing operations are likely to grow in June. The index of industrial production and exports also recorded consistant growth in the period.

The lingering El Nino will likely continue to affect agricultural output, the report said, however, it also forecasts that the strong development of manufacturing industries and services will lift the GDP growth in this quarter to 6.1 percent.
HSBC also kept its GDP forecast in the whole year of 2016 unchanged at 6.3 percent.

The bank put forward medium-term solutions on financial reform in Vietnam, including broadening the base of profit, and adjusting accounting methods in line with international standards.

Administrative measures to restrain tax evasion, the announcement of tax fraud cases and the simplification of the VAT refund process will be helpful solutions, the report stated.-VNA