Vietnam stands out as the only ASEAN economy to achieve potential growth in 2020 and rebound to a 8.1 percent growth rate in 2021, HSBC said in a recent report.
In the report titled ‘Asia Economics: It's About Stamina,’ HSBC affirmed that despite many significant challenges, Vietnam's economy rose 1.8 percent in the first half of 2020.
The government's efforts to contain COVID-19 significantly contributed to the country’s economic achievement.
However, the resurgence of the pandemic in late July impeded Vietnam's initial goal to bounce back early compared to other countries.
With its success in suppressing the new outbreak, Vietnam is put in the top position among the ASEAN economies in terms of potential growth in 2020, HSBC said.
This year Vietnam's gross domestic product (GDP) growth is expected to reach 2.6 percent, which is slightly lower than the previous forecast of 3 percent.
HSBC believes that Vietnam will benefit from the technology-led recovery and stable foreign direct investment (FDI) inflow in the year to come.
Therefore, the Southeast Asian nation still has a positive outlook with expected economic growth of 8.1 percent next year, compared to the previous projection of 8.5 percent.
“Vietnam’s growth rate this year is still quietly ‘skyrocketing’ and will stand out as the fastest-growing economy in the region by 2021," HSBC added.
HSBC is one of the world’s largest banking and financial service organizations.