Vietnam to meet inflation target in 2022: HSBC

Created 14 May 2022
  • PDF
Editor Choice
(0 votes, average 0 out of 5)

HSBC has raised the inflation forecast for Vietnam, but expects the country to meet its target of 4 percent.
Vietnam to meet inflation target in 2022: HSBC

It expected Vietnam’s inflation at 3.7 percent in the latest report, up 0.7 percentage point compared to the previous forecast published February.

However, Vietnam’s inflation is unlikely to be a big concern this year as it will likely remain well below the 4 percent inflation target of the State Bank of Vietnam, the lender said.

Compared to rising inflation in parts of Southeast Asia, Vietnam’s inflationary risk is among the lower end of the group, it added.

According to the General Statistic Office, the four-month consumer price index rose by 2.1 percent compared to 0.89 percent over the same period last year.

Transport and food, two categories used in calculating CPI, fell in April thanks to declining oil and domestic agriculture product prices between March and April.

Education and housing & construction material rose, mirroring higher tuition fees after a period of Covid-19 discounts and rising rent prices after workers return to cities.

But the bank also warned of possible trade downturn from volatility of the US and China markets.

With Covid-19 gradually brought under control, high consumer demand in the U.S. could shift from goods to services in 2022, affecting Vietnam’s exports.

Exports are also forecasted to feel more rumble from China’s Covid-19 lockdown in major cities, it added, as China accounted for 30 percent of export share.

"Securing raw materials amid China’s lockdowns is a major concern for local manufacturers", HSBC reported.

Source: VNE

Maybe You Also Interesting :

» No ideal waste treatment technology for Vietnam yet

The ideal waste treatment technology is still out of reach for Vietnam due to high humidity and unsorted trash, a company director told a Monday conference.

» Vietnamese singers in running for international music awards

Two Vietnamese singers, Pham Dinh Thai Ngan and Wren Evans, have been nominated at this year's MTV Europe Music Awards and Asian TV Awards.

» Storm Mulan to bring heavy rains to northern Vietnam

A tropical depression over the East Sea has evolved into a storm, the second off Vietnamese coast this year, and is forecast to bring heavy rains to northern...