Vietnam's Economy on Strong Rebound in Q2: HSBC
The Hongkong and Shanghai Banking Corporation (HSBC) has released the latest report on the prospects of Vietnam's market, stating that Vietnam's economy is still in a trial period but economic indicators in the second quarter of this year showed a strong recovery of the economy.
Despite a gloom in the Purchasing Managers' Index (PMI) in the region, Vietnam's PMI continued to expand in May and reached a ten-month high. The country's PMI surged from 52.3 in April to 52.7 in May.
The number of new orders continued to rise sharply, indicating that manufacturing operations can continue to grow in June. In the meantime, industrial production and exports will ceaselessly increase in the second quarter of this year.
The lingering El Nino will likely continue to affect agricultural output, but HSBC expected that solid manufacturing and service sector output would lift the GDP growth in the second quarter of 2016 to 6.1 per cent year-on-year from 5.6 per cent in the previous quarter.
HSBC also kept the full-year 2016 GDP forecast unchanged at 6.3 per cent year-on-year.
The bank put forth medium-term solutions on financial reform in Vietnam including broadening the base of profit and adjusting accounting methods in line with international standards.
Accordingly, administrative measures to restrain tax evasion, the announcement of tax fraud cases and the simplification of the VAT refund process will be helpful.
HSBC also suggested the adjustment of accounting methods aligned with international standards to facilitate cross-country comparisons and improvements to financial communications to raise awareness of the market and increase management responsibility and capacity.
NDO
Vietnamese
