Vietnam Bank News

Vietnam Bank Directory

Trade LTCUSD, Bitcoin and Cryptocurrencies

BUY & SELL LTCUSD | View LTCUSD News & Updates

Buy Sell LTCUSD, Bitcoin and Cryptocurrencies

Banking News & Financial Services News
Get the latest banking news headlines from Find in-depth Vietnam coverage from banking, investing, financial, stock market, and more abou Vietnam banking system, bank for industry and trade, Vietnam banking sector.

HSBC Survey Forecasts Vietnam, Indian Growth   2008-02-02 - VNANET

The emerging markets of Vietnam and India are the most optimistic across a wide set of key indicators of a recent survey by the Hong Kong and Shanghai Banking Corp (HSBC).


The emerging markets of Vietnam and India are the most optimistic across a wide set of key indicators of a recent survey by the Hong Kong and Shanghai Banking Corp (HSBC).

The Asia-Pacific Small Business Confidence Survey, conducted for HSBC by research company TNS in the fourth quarter of 2007, covered 2,700 SMEs in Hong Kong, mainland China, Taiwan, Singapore, India, Vietnam, South Korea, Malaysia and Indonesia.

Small and medium enterprises (SMEs) in Asia remain positive about prospects for Asia’s economic growth and trade activity this year, say the results.

Companies were asked about their local economic outlook for the next six months, their plans to increase or reduce capital investment and staffing levels, as well as their expectations about trade volumes with mainland China, the rest of Asia and the rest of the world.

Margaret Leung, HSBC’s Global Co-head of Commercial Banking, said: "The fact that the vast majority of SMEs expect economic growth to continue in 2008 is a testament to the resilience of the SME sector. In the face of growing economic uncertainty in the US, emerging markets still see great opportunity for growth, as intra-Asian trade grows and the small business sector is learning to adapt quickly to changing global conditions.

"As the banker to these businesses, HSBC is excited to be part of this development."

SMEs sit pretty

Vietnam SMEs were the most optimistic in the region, followed by those in India and mainland China. More than two-thirds of SMEs in Vietnam surveyed said they expect the economy to grow more than 4% in 2008. An overwhelming majority, 90%, expect the economy to grow at a faster pace while only a mere 1% expect the pace to slow down.

Capital investment plans

SMEs in Vietnam and India are acting on their positive economic outlook with increased capital investment in the first half of 2008. Three – quarters of the Vietnam SMEs plan to increase their current expenditure levels. Hong Kong SMEs are more cautious: 61% plan to maintain the same level of capital expenditure as last year and 26% plan to increase investment.

Recruitment plans

While 72% of SMEs across Asia plan to maintain current staffing levels, in Vietnam, 59% are planning to hire more workers. 41% expect to maintain the same, and none will cut jobs. SMEs that engage in cross-border trade were asked about their expectations of trade volumes with mainland China, the rest of Asia and the rest of the world. Vietnam and India SMEs are the most optimistic about trade growth with mainland China, trade with the rest of Asia as well as with the rest of the world.

In Vietnam, impressively, almost four-fifths expect trade to grow. Among the positive 78%, 38% believe trade volume with mainland China will grow by over 20%. Growth expectations in trading activities with the rest of Asia and the rest of the world are somewhat similar to each other and to that with China. Only a very small minority (4%) expect trade volume to decrease this year in each of the three areas.

"Vietnam’s economy saw strong GDP growth by a cumulative average rate of 7% over the past decade and peaked at a record high 8.44% in 2007. In the past year alone, we have seen nothing short of a sea change in terms of policies as a result of market liberalization," said Huynh Buu Quang, Senior Vice President and Head of Commercial Banking, HSBC Vietnam.

"Given these supporting factors, the country’s SMEs are becoming more and more active to catch all the golden opportunities offered by the second fastest growing economy in the region. The 290,000 SMEs in Vietnam represent considerable collective economic might and their optimism bodes well for local economy as a whole," he added.

"HSBC Commercial Banking shares the aspirations of SMEs to grow and succeed domestically and internationally and we have the expertise and network to support that. It’s heartening to see that SMEs are looking to the year ahead with confidence."

Other Banking News

Singapore, Viet Nam state banks ink deal   2008-02-01

State Bank raises prime rate   2008-01-31

State Bank rethinks controversial securities lending cap   2008-01-30

Banks set for new deposit interest war   2008-01-29

Central Bank sets limits on local gold production   2008-01-28

State Bank allocates 62 tonnes in gold quota to country's suppliers   2008-01-25

Agribank to delay IPO, sell off in-house financing   2008-01-25

DongA’s gets new members   2008-01-24

Techcombank’s profit jumps 131 percent   2008-01-24

Banks Eyeing Real Estate Instead of Stock Market   2008-01-23

Banks hike deposit rates to meet loan demand   2008-01-23

OceanBank to raise charter capital   2008-01-23

All Agribank affiliates to go public in 2008   2008-01-22

State Bank mulls lifting controversial lending cap   2008-01-22