HSBC hails VN’s positive economic signs 
17:38 | 04/09/2012
VGP –  Hongkong and Shanghai Banking Corporation (HSBC) has said in its recent report that Viet Nam’s economy is recording positive changes and projects that the country will post a growth rate of 5.1% this year.

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The report came after optimistic assessments on Viet Nam’s macro-economic situation made by other foreign financial institutions like JPMorgan Chase and Standard & Poor's (S&P).

On its latest report themed “Viet Nam at a glance”, with a sub-heading “Good things come to those who wait”, HSBC said that the State Bank of Viet Nam (SBV) has become more transparent by announcing the country’s bad debts that accounted for 8.6-10% of outstanding balance.

These signaled that the Vietnamese Government would take other steps to address weaknesses long existed in State-owned enterprises.

In spite of domestic oil price increases, in August, inflation rate was 5%, falling from 5.5% in July. Although export was lower than that of the previous years, it still remained at a two-digit number. Foreign currency reserves were risen and market confidence in the SBV was reinforced.

According to HSBC, strong political endeavor was attributed to these positive changes.

Despite weak domestic demand, overseas demand for Vietnamese goods seems to pick up. Export volume went up 13% in August, up 1.6% against July. Imports saw 8% year-on-year increase and 12.8% month-on-month surge.

The bank was pessimistic about the country’s export in the coming time. 

However, it proposed Vietnamese policymakers focus on ensuring economic stability and  productivity and handling bad debts in the banking system./.

By Kim Loan  

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