Most Vietnamese businesses adopt rosy outlook for 2020: HSBC

By Hung Le   November 8, 2019 | 10:00 pm PT
Most Vietnamese businesses adopt rosy outlook for 2020: HSBC
Vietnamese employees work at a scooter factory in the northern city of Hai Phong. Photo by VnExpress/Ngoc Tuan.
Buoyed by the strong economy and excited by international prospects, the majority of Vietnamese businesses anticipate a bright 2020, a HSBC survey finds.

97 percent of Vietnamese businesses polled in a HSBC survey said they believed their sales will grow next year, significantly higher than the global and Asia-Pacific (APAC) averages of 79 and 77 percent respectively.

The report, called "HSBC Navigator: Now, Next and How", presents the results of a global survey that polled 9,131 businesses in 35 markets worldwide. There were 200 Vietnamese respondents.

39 percent of businesses in Vietnam foresee 15 percent growth over the next year – nearly double the number of high growth businesses globally (22 percent).

The mid-term outlook in Vietnam is even brighter with 100 percent of firms expecting sales to grow over the next five years, the report said.

"From an international trade perspective, Vietnam is one of the most optimistic countries globally and justifiably so," said Tim Evans, CEO of HSBC Vietnam. 

The domestic economy is in a good place, hitting a 10-year peak of 7.1 percent growth in 2018, and bolstered by continued strong momentum in 2019 with Q3 growth reaching 7.31 percent, he added.

The survey also shows Vietnamese firms are looking beyond the bottom line for positive impacts of international trade.

Over the next five years, 98 percent believe it will drive innovation (compared to 80 percent globally), while 96 percent say it will provide new business opportunities and 95 percent feel it will improve efficiency compared to respective global rates of 79 percent and 78 percent.

More than one third of firms surveyed (32 percent) are already exploring digital technologies to enhance their supply chains to accelerate market reach and to move closer to the end consumer. 

Vietnamese companies are also increasingly recognizing the importance of sustainability as a factor driving the long-term viability of their business and as a way to attract and retain talent. 

According to a report released in early-October by the World Bank, Vietnam’s medium-term outlook remains broadly positive, while real GDP growth is projected to reach 6.6 percent this year.

Growth is expected to moderate in 2020 and 2021 to a more sustainable pace of 6.5 percent due to slower growth in the export-oriented manufacturing sector and deceleration in the agricultural sector, the report said.

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