Foreign investment into Vietnamese startups is predicted to increase although the COVID-19 pandemic has left a negative impact on the economy, according to experts.

HSBC has forecast two scenarios for Vietnam’s economy until the end of the year, with both of them focused on the re-opening of the economy, albeit in a cautious and systematic way.

VOV.VN - The Vietnamese market will remain an attractive investment destination for foreign investors moving forward, the Hong Kong Shanghai Banking Corporation (HSBC) Vietnam said in its monthly macroeconomic update for September 2021.

Ngo Dang Khoa, country director of foreign exchange and capital markets at HSBC Vietnam, has suggested three challenges that the Vietnamese economy would face in the second half of this year.

The multinational financial group HSBC held a webinar on July 1 to introduce business opportunities in the Association of South East Asian Nations (ASEAN) for European Union and UK businesses.

Vietnam’s stock market is expected to continue to grow, helped by strong economic growth and increasing local liquidity. The positive outlook will attract foreign investors back to the market, according to HSBC.

VOV.VN - The consumer finance market in the year ahead is predicted to struggle making any significant breakthroughs, despite lending interest rates witnessing a downward trend, according to experts.

VOV.VN - Vietnam’s GDP growth rate is forecast to rise by 6.5% this year, a figure which is higher than the global average of 6%, before climbing to 7.2% in 2022, according to data released in the latest World Economic Outlook report compiled by the International Monetary Fund (IMF).

While there are several upside risks, moderating food prices should keep Vietnam’s inflation under control.

Private investments in Vietnam have reached a new peak in contrast to the trend towards decline around the world and in the ASEAN region due to the impact of COVID-19.