Vietnam’s export will grow to 20 percent this year from 15.4 percent in 2013, helping the country’s economic growth to reach 5.6 percent, according to the latest report on the country’s macroeconomic prospects by the Hongkong and Shanghai Banking Corporation (HSBC).
|Illustrative image. (Photo: SGGP)|
The report said that Vietnam possibly becomes one of the countries who receive most benefits after demand in European countries improved as the country’s economy totally relies on exports with exports accounting for about 80 percent of gross domestic product (GDP).
Exports, especially by foreign direct investment enterprises, will foster economic growth for Vietnam. The purchasing managers index of Vietnamese manufacturing industry showed that manufacturing production was at 51.8 points in December last year, the highest level since April 2011. HSBC expects that production will maintain rising momentum in the upcoming months when inventory level drops and orders recovers.
GDP growth of European countries and the US is expected to increase in 2014 which will boost demand for Vietnamese goods, such as: garments and electronic products.
With global economic conditions having gradually improved and trade agreements under negotiation, export companies are looking forward to a prosperous year. The country will receive more benefits from European countries which account for 14 percent of total exports, instead of from the US which accounts for 18 percent of total exports.
The country’s inflation rate was on losing trend, declining from 9.3 percent in 2012 to 6.6 percent in 2013. This year, inflation is forecast to slightly rise as the price of gasoline and foods climbs.