Vietnam will be able to sustain strong export growth in the long term, thanks to the diversification of its markets and products, according to a new report by HSBC.
In its “Trade Forecast Report,” the banking group’s research arm predicts that Vietnam’s exports will grow by 10.1% from 2021 to 2030, largely unchanged from the growth forecast for 2015 to 2020, reported VGP News, the state-run news agency.
Foreign direct investment (FDI) inflows have been very strong in recent years, the report stated, helping Vietnam diversify its export base and gradually move to higher value sectors, most notably to information and communications technology (ICT) equipment, which now accounts for around 25% of its exports, up from less than 10% five years ago.
ICT equipment is forecast to contribute 19% of the total increase in exports from 2021 to 2030, up from 14% in 2015-2020, the bank added.
It said Vietnam has three key forces supporting export activities—low production costs and a huge labor force, policy geared toward expanding trade and FDIs, and sound fundamentals in sustainable macro-economic management.
Photo: HoangTuanAnh
