Vietnam receives slightly higher inflation forecast, negligible risk: HSBC

In a recent report, HSBC adjusted its prediction for Vietnam's inflation this year from 2.7 percent to 3 percent, a slight increase but with negligible risk as the economy has shown signs of a strong rebound in the making.
Vietnam receives slightly higher inflation forecast, negligible risk: HSBC ảnh 1A view of HCM City's financial district. (Photo: VNA)
Hanoi (VNS/VNA) - In a recent report, HSBC adjusted its predictionfor Vietnam's inflation this year from 2.7 percent to 3 percent, a slightincrease but with negligible risk as the economy has shown signs of a strongrebound in the making. 

While thenumber of cases has continued to climb since before Tet (LunarNew Year), the Government has so far refused to reimpose stringent social andmobility restrictions.   

"Policymakershave made clear that they intend to stick with the new strategy of livingtogether with the virus thanks to the success of the country's mass vaccinationprogramme. This has resulted in higher confidence among consumers and morerobust economical activities in the domestic market," said the report. 

Retail hasrecorded a positive 1.3 percent in growth year-on-year in January alone afterlosing nearly 4 percent in 2021. While the 1.3 percent figure may not appear asimpressive, it should be taken into consideration that January 2021's numberwas especially high because 2021's Tet fellin early February, giving retail a huge demand boost during the entire month.

Firms havebeen able to address labour shortage issues with most vacant positions filledafter the holidays, setting the stage for an economic recovery. In addition,the country's manufacturing PMI last month recorded the largest gain in thelast nine months, showing a fast rebound of the industrial sector with a vastmajority of indicators pointing to a strong possibility of achievingpre-pandemic industrial production levels. Despite a slight uptick ininflation, the price for foodstuffs remained stable due to weak demand,said the report. 

"A smallincrease in inflation (from 2.7 percent to 3 percent) for 2022 in our forecastindicates negligible risk for the State Bank of Vietnam as it remainedsignificantly lower than the government's inflation target (4 percent),"said HSBC researchers. 

"This isespecially true while put in comparison with inflation forecasts for ASEANeconomies such as Thailand and Singapore, where higher inflation has started toraise concerns.", they said. 

Nguyen BaMinh, head of the Institute of Economics - Finance under the Academy of Financein Hanoi, said inflationary pressure is likely to stay moderate throughout 2022as the global economy slowly recovers while dealing with a disrupted supplychain as a result of the pandemic. 

However,checking the spread of the virus still remains a top priority for theGovernment to ensure economic recovery, a stable macroeconomic environment andeffective inflation control. 

TheGovernment, in the meantime, must tighten control over prices of keycommodities to support the business sector as a whole as well as consumers,especially petro products. 

A Viet DragonSecurities' report said the biggest threat is likely inflation due to increasesin the prices of imports as the economy continues to rely heavily on imports ofraw materials, up to 37 percent of overall material cost according to theMinistry of Planning and Investment./.
VNA

See more

National Highway 61C (Photo; baohaugiang.com.vn)

Hau Giang, JICA to upgrade national highway

National Highway 61C linking Can Tho city with Hau Giang province will feature four lanes for motor vehicles and two for non-motorized traffic, with an estimated cost of over 5.17 trillion VND (206.8 million USD).

At the ceremony (Photo: nhandan.vn)

Ha Nam grants investment certificates for two key projects

Ha Nam province on February 13 licenced the high-precision circuit board manufacturing plant of Red Board Technology (Vietnam) Co., Ltd., and the kitchenware and related metal products manufacturing plant of Casla Kitchenware JSC.

A total of 18,893 cars were sold in Vietnam in January, a drop of 40% compared to the previous month (Photo: VietnamPlus)

Car sales in Vietnam down 40% in January

Experts attributed a sharp decline in car sales to the Lunar New Year (Tet) holidays, impacting consumers' purchasing power. Consumers tend to wait for new models and releases at this time of year, contributing to lower sales during this period.

Illustrative image (Photo: VNA)

Retail fuel prices in latest adjustment

According to the new pricing, E5 RON92 bio-fuel is now priced at 20,598 VND per litre, up 156 VND, while RON95-III costs 21,074 VND per litre, an increase of 146 VND.

NA Chairman Tran Thanh Man speaks at the session on February 13. (Photo: VNA)

NA weighs new policies to boost science, technology, innovation

The resolution, presented at the February 13 session of the NA Standing Committee, seeks to establish a legal framework that would effectively boost national scientific-technological advancement and digital transformation, making them driving forces for socio-economic development to deliver on the dual targets by 2030 and 2045 as outlined at the 13th National Party Congress.

CPI in January 2025 rose by 0.98% compared to December 2024 (Photo: thoibaotaichinhvietnam.com)

Fiscal, monetary policies support demand stimulation, price stabilisation

These efforts, in conjunction with the implementation of monetary policies and other macroeconomic policies, aim to solve difficulties for businesses and the public, stabilise the macroeconomy, control inflation, ensure the balance of the economy, promote economic growth, and secure social welfare and people's livelihoods.

People line up to register for land auctions in Hoai Duc district, Hanoi. (Photo: VNA)

Affordable housing for young buyers a win-win: HoREA

Most young people are ambitious and have a long career path ahead of them to generate income and repay loans. Typically, within 10-15 years, their earnings will double or triple, making such loans low-risk for banks, said HoREA