A garment factory in Vietnam (Photo: VNA) Hanoi (VNA) – Vietnam posted the fastest growth in Asia in 2020 and willonce again be among the most outstanding performers in the region this year,according to the Hong Kong Shanghai Banking Corporation (HSBC).
Inits latest “Asia Economics Quarterly” report, HSBC said despite unprecedentedchallenges, Vietnam has strongly overcome the pandemic crisis. With apopulation of over 95 million, the country has managed to flatten the COVID-19curve much sooner and keep the infection tally at around 1,400 thanks to swiftand effective prevention efforts by State agencies.
Thoughthe 2020 GDP growth of 2.91 percent was the lowest in the recent decade, it wasstill assessed as a big success and among the world’s highest considering thecomplicated development of the COVID-19 pandemic.
Inflationdecelerated from 3.9 percent in the first three quarters to 1.5 percent inNovember compared to the same period of 2019 thanks to normalised good pricesand declined oil prices.
HSBCresearchers expressed their belief that Vietnam will benefit from tech-ledrecovery, sustained FDI inflow, and many free trade agreements signed.
However,they still slightly revised the country’s 2021 growth forecast down to 7.6percent, from the previous estimate of 8.1 percent, due to a prolonged recoveryin the tourism industry.
Theyheld that although the country is now ready to outpace other countries in theregion in 2021, there remain risks to its economic recovery.
Manyobstacles still exist in the tourism sector, HSBC said, noting though the worstmay have passed after the second quarter, tourism-related services likeaccommodation and transportation are still in a bleak situation as a result ofcross-border travel restrictions.
Thesecond wave of COVID-19 infections in late July was swiftly brought undercontrol, but it could make the Government more prudent in reopening borders andattracting international visitors. A meaningful tourism recovery is unlikely inthe time ahead until effective vaccines are available and there is a globalintegrated approach to international tourism, according to HSBC./.
VNA
