Vietnam to be among top growth performers again in 2021, says HSBC

Tourists wear face masks in Hanoi early last year. Tourism-related services like accommodation and transportation are still in a bleak situation due to cross-border travel restrictions in VIetnam. - Vietnam News/ANN

HANOI, Jan 10 (Vietnam News/ANN): Vietnam posted the fastest growth in Asia in 2020 and will once again be among the most outstanding performers in the region this year, according to the Hong Kong Shanghai Banking Corporation (HSBC).

VNA quoting HSBC in its latest "Asia Economics Quarterly” report said despite unprecedented challenges, Vietnam has strongly overcome the pandemic crisis.

With a population of over 95 million, the country has managed to flatten the Covid-19 curve much sooner and keep the infection tally at around 1,400 thanks to swift and effective prevention efforts by State agencies.

Though the 2020 GDP growth of 2.91 per cent was the lowest in the recent decade, it was still assessed as a big success and among the world’s highest considering the complicated development of the Covid-19 pandemic.

Inflation decelerated from 3.9 per cent in the first three quarters to 1.5 percent in November compared to the same period of 2019 thanks to normalised good prices and declined oil prices.

HSBC researchers expressed their belief that Vietnam will benefit from tech-led recovery, sustained FDI inflow, and many free trade agreements signed.

However, they still slightly revised the country’s 2021 growth forecast down to 7.6 per cent, from the previous estimate of 8.1 per cent, due to a prolonged recovery in the tourism industry.

They held that although the country is now ready to outpace other countries in the region in 2021, there remain risks to its economic recovery, VNA reported.

Many obstacles still exist in the tourism sector, HSBC said, noting though the worst may have passed after the second quarter, tourism-related services like accommodation and transportation are still in a bleak situation as a result of cross-border travel restrictions.

Vietnam also reported one new case of Covid-19 on Saturday, raising the total confirmed cases in the country to 1,513 with 35 deaths, according to the Ministry of Health.

The new case is a 25-year-old Vietnamese man who recently entered the country from abroad and was quarantined upon arrival.

The ministry also announced that four more patients have been given the all-clear, raising the total cured cases in the country to 1,361 as of Saturday.

Meanwhile, over 17,600 people are being quarantined and monitored, the ministry said. - Vietnam News/Asian News Network