HSBC raises 2025 Vietnam GDP growth forecast to 7.9% from 6.6% earlier

The country achieved an unexpected economic growth rate of 8.23 per cent in the third quarter (Q3) this year after maintaining the strong growth momentum of Q2, it reported in its latest update ‘Vietnam at a Glance’.

"While exports from other ASEAN countries to the US have experienced a slight decline as the impact of earlier frontloading activities fades, Vietnam's trade performance has remained strong with double-digit growth. Even more encouragingly, Vietnam's retained trade surplus has more than doubled to $3 billion in the third quarter compared with the first half of 2025," HSBC experts wrote.

However, HSBC cautioned that the biggest risk to growth lies in potential trade volatility, according to domestic media reports.

As inflation no longer poses a major concern, the country’s central bank is targeting higher credit growth to support economic expansion, it noted.

By late August, credit growth surged by 20 per cent year on year (YoY), aligning well with the central bank's full-year target of 19-20 per cent, which is higher than the original goal of 16 per cent.

Singapore's United Overseas Bank also raised its 2025 GDP growth forecast for the country to 7.5 per cent from 6.9 per cent.

ALCHEMPro News Desk (DS)