Vietnam's economic indicators remain positive: HSBC

According to HSBC, the credit ratings agency Moody’s upgraded Vietnam's rating from 'stable' to 'positive' after the latest Purchasing Managers’ Index (PMI) of Vietnam’s overseas demand reached a record high in April. Furthermore, producers still have a strong belief that output will increase in the next 12 months thanks to new orders and business expansion plans.

Vietnam has become an important country in the regional supply chain for electronic products, especially mobile phones, one of Vietnam's largest export items.

The manufacturing sector in Vietnam continues to receive support from stable FDI inflow with the tangible FDI received in the first four months of this year up 3.2% from the same period last year.

The current macroeconomic stability will help Vietnam maintain a steady inflow of FDI in the future, the report stated.

Meanwhile, inflation has gradually been eased. Although there are higher energy prices and rising costs for health and education, stable prices of food and foodstuff are controlling overall inflation.

The report also said that Vietnam's economic performance continues to outperform other countries. Recent data showed that the manufacturing sector maintains a good growth rate and export activities rebounded with the key export items including phones and spare parts.

According to HSBC, output and new orders have slowed down but new export orders have increased sharply, creating more jobs and a slight decline in inventory.

“The macroeconomic stability provides a favourable climate for businesses to thrive and, therefore, it is hardly surprising that the inflow of FDI remains steady,” the report stated.