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Recently, HSBC released a report in which HSBC’s CEO Tim Evans gives out the overview of Vietnam’s economy in 2020 and some predictions for 2021.

Vietnam Still the Only ASEAN Country to Evidence Positive Growth This Year, HSBC Said
“The year 2020 will cast a long shadow over us all for a long time to come. Covid-19 pandemic has changed entirely the way we work, the way we live, the way we interact. It has also had a material impact on the way we do business and cooperate with each other. When I first took on this CEO role at HSBC Vietnam, the initial objective was to continue to drive growth and support Vietnamese corporates and the economy to grow to the next level. 2020 changed all of that. We have lived through unprecedented times and challenges that none of us expected. We have been tested in ways we never thought possible. We have had to content with a global health crisis, that has led to economic, financial and social challenges. As if this was not enough, parts of Vietnam have had to contend with a natural disaster too”, Tim Evans said. 
HSBC’s CEO highly appreciated the way Vietnam solved the internal Covid-19 pandemic: “Despite these once in a lifetime challenges, we need to look to the future. We must take comfort from the very positive way in which Vietnam and the Vietnamese have responded to this crisis. Vietnam has arguably handled this crisis better than most nations across the globe and as a foreigner living in Vietnam, I am eternally grateful to the way the authorities and Vietnamese have protected us all from this virus”.
The way Vietnam has handled the crisis also means that many economic forecasts suggest that as the world pulls out of the crisis, Vietnam will be an economic benefactor from the way they managed the crisis. This is reflected in positive economic forecasts for the year ahead. 
Facing many obstacles caused by the Covid-19 pandemic, Vietnam still recorded a GDP growth of 1.8% in the 1H2020, and is one of the very fewcountries in the world to maintain positive growth momentum in 2020. Average inflation over the first 11 months in 2020 was effectively controlled with an increase of 3.51% y-o-y, which is lower than the target of below 4% set by the National Assembly. This was achieved thanks to the Government's efforts to control the epidemic and the subsequent waves that hit the country.
HSBC’s own house-view forecasts Vietnam will achieve GDP growth of 2.6% in 2020 and that the country will rebound strongly with 8.1% growth in 2021. Despite 2.6% being the lowest growth rate in many years, Vietnam is still the only ASEAN country to evidence positive growth this year. Also, according to the International Monetary Fund (IMF), Vietnam’s GDP growth is expected to reach 2.4% for 2020 and remains one of four economies in the world that have positive growth of GDP per capita this year, including Taiwan, Egypt and China.  
In 2020, manufacturing and exports remain the two driving forces for Vietnam's economic growth, together with foreign direct investment (FDI) which also plays a crucial role. November indicators showed that Vietnam was on track for a solid economic recovery. Manufacturing has grown double digits for the first time since the start of the Covid-19, while exports continue to shine due to increasedelectronics shipment. The index of industrial production (IIP) for 11 months of 2020 is estimated to increase by 3.1% over the same period last year. The export turnover of 11 months of 2020 is estimated to achieve USD254.6 billion, up 5.3% y-o-y.

DIEP NGUYEN