Business

HSBC lowers Vietnam’s inflation forecast to 3.5 percent

HSBC has lowered its forecast on Vietnam’s inflation rate in 2022 to 3.5 percent from its earlier prediction of 3.7 percent due to the stable domestic food price, which is expected to help curb the country’s headline inflation, according to a report released by the bank on June 14.
HSBC lowers Vietnam’s inflation forecast to 3.5 percent ảnh 1Illustrative image (Photo: VNA)

HCM City (VNA) - HSBC has lowered its forecast on Vietnam’s inflation rate in 2022 to 3.5 percent from its earlier prediction of 3.7 percent due to the stable domestic food prices, which is expected to help curb the country’s headline inflation, according to a report released by the bank on June 14.

The bank explained that the inflation risk in ASEAN countries has increased since the beginning of 2022, leading to a high rise in both core and headline inflation rates compared to the period before COVID-19 broke out.

However, the impacts are different on each country, and inflation pressure in Singapore, Thailand and the Philippines has become heavier, while in Vietnam, Malaysia and Indonesia, inflation has been under good control, according to the report.

But headline inflation is likely to increase sharply in the second group soon, especially in the context of rising energy prices, it predicted, adding that although the world oil price has "cooled down" compared to the peak in March, it is still at a high level, while the price of natural gas continues to increase gradually.

In Vietnam, energy price inflation has also persisted for long. Transport prices hit a record high, surpassing food inflation to become the main driver of Vietnam's headline inflation, it said. Despite rising energy prices, food inflation has remained moderate, helping control the overall increase in headline inflation so far, it added.

In the report, HSBC also increased its inflation forecast for Thailand, Singapore, Indonesia and the Philippines.

After considering both inflation and growth, HSBC also revised its forecast for Vietnam's operating interest rates in 2022.

While the current inflation rate remains below the 4 percent target, the bank expects persistent high energy prices will continue to push overall prices up. It is likely that inflation will sometimes surpass the State Bank of Vietnam’s ceiling rate of 4 percent in the second half of 2022 but only temporarily, said the report. That situation will likely cause the bank to adjust interest rates by 50 basis points in the third quarter of 2022 before raising the rates three times, 25 basis points each time in 2023, the report underlined./.

VNA
#HSBC #ASEAN countries #COVID-19 #headline inflation #food prices #energy price inflation #Vietnam #Vietnam news #Vietnam News Agency
Follow VietnamPlus

Related News

Vietnam’s CPI up 2.25 percent in five months

Vietnam’s CPI up 2.25 percent in five months

Vietnam’s consumer price index (CPI) in the first five months of the year edged up 2.25 percent year-on-year while core inflation rose by 1.1 percent, according to the General Statistics Office (GSO).

See more

Permanent Deputy Prime Minister Nguyen Hoa Binh speaks at the meeting to review the development strategy and operational framework for the international financial centre. (Photo: VNA)

Deputy PM urges early establishment of trading platforms at Int’l Financial Centre

Chairing a meeting in Hanoi on March 6 to review the development strategy and operational framework for the international financial centre, Binh acknowledged the progress made by relevant ministries and localities in a short period of time. However, he noted that current efforts have largely focused on building the organisational structure and legal framework.

Regza Vietnam Electronics Co., Ltd. (fully invested by Taiwan, China) installs four modern production lines in 2024. (Photo: VNA)

FDI disbursement in Jan–Feb reaches five-year high

The NSO noted that the Republic of Korea (RoK) and Singapore were the largest investors during the period, each registering over 1 billion USD in newly committed capital, accounting for a significant share of total foreign investment inflows into Vietnam.

Rising geopolitical tensions in the Middle East on Vietnam’s economy under the baseline scenario is expected to remain limited. (Photo: VNA)

Middle East tensions likely to have moderate impact on Vietnam’s economy: VinaCapital

According to Michael Kokalari, Director of Macroeconomic Analysis and Market Research at VinaCapital, the conflict is unlikely to significantly affect Vietnam. Exports to the Middle East account for less than 3% of Vietnam’s total export turnover, while the likelihood of a large-scale and prolonged ground campaign in Iran is considered relatively low.

VinFast has signed a strategic partnership with six electric motorbike dealers in Indonesia, marking a new step in expanding its distribution network in one of the region’s and the world’s largest motorcycle markets. (Photo: VNA)

VinFast partners with six e-scooter dealers in Indonesia

In preparation for the launch of its electric scooters in Q2/2026, VinFast has signed additional MoUs with six dealers, including PT. IB Motor, PT. Sentrik, PT. Axara Marani, PT. Sukses Sejati Indonesia, PT. Tangguh Inti Motor, and PT. Kiki Motor Persada. These partners are distributors with strong experience in key markets and share a common direction toward green mobility solutions.

Fishermen at Dong Tac fishing port in Phu Yen ward, Dak Lak province prepare to head back to sea after the storm (Photo: VNA)

Dak Lak reviews fishing vessel fleet, steps up fight against IUU fishing

Local authorities are focusing on managing registered fishing vessels and reviewing all records and data related to fishing, purchasing and processing seafood. Violations related to IUU fishing are being strictly handled under the principle of “facing the problem, not avoiding it”.

UK Ambassador to Vietnam Iain Frew addresses the event (Photo: nhandan.vn)

Vietnam, UK step up cooperation in derivatives commodity market development

The British Embassy in Vietnam and the British Consulate-General in Vietnam, in coordination with Boston Consulting Group (BCG), held a capacity-building session under the UK–Vietnam Growth Gateway initiative in Hanoi on March 5 to discuss strategies for developing a transparent and globally connected commodity and derivatives market.

The Quang Tri coastal road project, spanning nearly 55km, is among key projects with regional connectivity that play an important role in promoting socio-economic development in the central province of Quang Tri. The project is expected to be completed by the end of 2026.(Photo: VNA)

Public investment disbursement slow despite record capital scale

As of February 28, total disbursed capital reached 55.74 trillion VND, equivalent to 5.6% of the plan assigned by the Prime Minister. Of the figure, disbursement of the central budget was estimated at 10.18 trillion VND, or 2.9% of the plan, while that of local budgets totalled 45.56 trillion VND, reaching 7% of the target.

Delegates taste UK food (Photo: VNA)

Taste of UK week promotes British foods in Vietnam

The “Taste of the UK” food week, held for the first time in Ho Chi Minh City from February 26 to March 11, is an opportunity to promote British food products and strengthen their presence in Vietnam, while giving local consumers a chance to experience the diversity of UK cuisine.

A customer purchases E5RON92 bioethanol fuel at a PVOIL gas station on Thai Thinh street, Hanoi (Photo: VNA)

Retail fuel prices rise sharply in March 5 adjustment

According to the Ministry of Industry and Trade, the global fuel market during the latest price adjustment period from February 26 to March 4, 2026 was influenced by several major factors, including the escalating military conflict between the US – Israel coalition and Iran.