A view of Cai Mep International Terminal. (Photo: www.cmit.com.vn)
With new factories commencing operations this year, foreign direct investment (FDI
) is expected to help Vietnam’s export turnover grow 10.1% year-on-year in 2016, HSBC
has said in its latest report.
“The resilience of Vietnam's manufacturing reflects the country's success in expanding global market share amidst weak global trade. This is largely thanks to FDI, which has continued to surge in 2016,” says the report.
Vietnam’s export growth rose to 6.0% y-o-y in April, up from 4.1% in March, thanks to increasing shipments of smartphones, especially those made by Samsung. This is weaker than the growth rates recorded during the same period last year, but sequential momentum has been improving.
The UK bank noted that the Nikkei Vietnam manufacturing PMI rose to a nine-month high, jumping to 52.3 in April from 50.7 in March. The reading is a testament to Vietnam's manufacturing competitiveness.
According to HSBC, consumer prices in April showed that the disinflation
ary pressures from lower commodity prices are bottoming out. However, overall inflation remains manageable.
The bank forecast core inflation to remain steady at around 2% through 2016. “As such, we think that the State Bank of Vietnam will keep the OMO rate unchanged through H1 2017,” Izumi Devalier, economist at HSBC said in the report.