Key View

• We at Fitch Solutions forecast Vietnam’s economy to grow 7.0% in 2022, revised down from 8.0% as growth in 2021 proved stronger than expected resulting in less favourable base effects.
• In Q421, real GDP growth rebounded to 5.2% y-o-y (up from a contraction of 6.2% y-o-y in Q321), which took 2021 full-year growth to 2.6%.
• We expect

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• Vietnam's third-largest mobile operator MobiFone has been approved to offer the country's first mobile money service. MobiFone's offering will operate over a two-year pilot scheme and will allow users to make online payments and transfer money online via their mobile account.
• The approval for mobile money operations in the country

Key View

• At Fitch Solutions, we have revised down our forecast for Vietnam’s credit growth to 12%, from 14% previously, in light of pandemic challenges and lockdowns which have curtailed economic activity and introduced uncertainty to the near-term economic outlook.
• While high global commodity prices will put upside pressure on inflation

Key View

• Continued lack of medical funding and healthcare infrastructure exists in Vietnam’s public sector.
• Role of private investment towards improving healthcare delivery will become increasingly important over the long term.
• Private healthcare providers will continue to expand their presence in the market.

Gaps remain in Vietnam's

Key View

• Vietnam’s real GDP contracted by 6.2% y-o-y in Q321, its steepest y-o-y contraction since the country began releasing quarterly data in 2000, taking growth for the first three quarters of 2021 to 1.4% y-o-y.
• The sharp Q321 contraction was due to stringent lockdowns in key economic municipalities of Hanoi and Ho Chi Minh City during

Key View

• Vietnam and India will have multiple collaboration opportunities in pharmaceuticals.
• Generic medicines will continue to account for an increasing share of pharmaceutical sales in Vietnam.
• Indian generic drugmakers will leverage the current favourable investment landscape to gain greater market share.

Vietnam and India will

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• The outlook for Vietnam’s emerging LNG sector remains promising. It is one of several new LNG markets in Asia that are forecast to begin first imports in the coming decade as Hanoi looks towards the fuel to replace declining domestic production and replace pollutive, environmentally-harming fuels in the energy mix.
• The prospect for

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• We at Fitch Solutions forecast Vietnam to record a current account surplus of 6.2% of GDP in 2021, slightly narrower against our 6.6% estimate recorded in 202, and we expect the surplus to narrow over the coming decade.
• Surplus in secondary income and the goods trade balance will be the primary drivers of the current account surplus

Key View

• At Fitch Solutions, we retain our forecast for Vietnam’s credit growth at 14.0% for 2021.
• Although real GDP growth in 2021 will be much stronger than 2020, the Vietnamese economy is still facing headwinds brought about by the pandemic, and we expect the State Bank of Vietnam (SBV) to keep its benchmark interest rates on hold.
• Market

Key View

• The Vietnamese economy grew by 6.6% y-o-y in Q221, accelerating from an upwardly revised 4.7% y-o-y (from 4.5% y-o-y) in Q121, with the Q2 print supported by low base effects.
• We at Fitch Solutions maintain our forecast for real GDP to grow by 5.8% in 2021.
• Growth in 2021 will be led by manufacturing activity, as slow Covid-19