The update comes from the bank's global research department in its recent "Vietnam at a Glance" report.
HSBC's analysis highlighted that the manufacturing sector was the most surprising, growing by 10% year-on-year. This was reflected in strong export growth in the second quarter, which reached 15% year-on-year. While the recovery was mainly led by the electronics sector.
The outlook for long-term foreign direct investment remains bright. Despite a fall from the peak in 2017, new FDI continues to flow into Vietnam, with capital from not only China and the Republic of Korea but also ASEAN countries, particularly Singapore.
In addition to trade, tourism-related services have maintained a positive trajectory. In the first half alone, Vietnam attracted over 8.8 million visitors, surpassing the total logged in 2019.
HSBC's upward revision of the GDP growth forecast to 6.5% suggests that Vietnam could become the fastest-growing economy in ASEAN in 2024./.
