Vietnam has been on right track and the most severe period has almost been over, said HSBC’s latest report.
This lender said what matters is state-owned enterprises (SOEs)’ ineffective capital deployment leading to unsatisfactory performance even losses over the past five years despite their ownership of excessive domestic investment capital.
Recently, a range of reform activities such as requirements on SOEs’ disclosure of business performance results and banking restructuring have been carried out. The most promising measure could be the plan on attracting foreign small and medium sized enterprises with a view to develop industrial centres, commented the bank.
What is encouraging is decelerating inflation that may be one-digit this year and the following year. Economic growth is expected to pick up in the second half of the year indicating the economy being on the right track.
However, stubbornly weak demand together with soaring bad debts would call for further cures, this bank emphasized.