Chuck Kuhn's Asia in Photos: Vietnam economy on the rise

Thursday, July 9, 2009

Vietnam economy on the rise

Photo: Chuck Kuhn Photography

Vietnam has “weathered the crisis astonishingly well so far,” HSBC Holdings Plc. said in a research note Wednesday. A rebound in construction and manufacturing is now driving the economy, it said.

The economy is forecast to experience a “big bounce” in growth to 6.8 percent in 2010 from 4.7 percent this year, the bank said.

“The recovery has begun,” Prakriti Sofat, a Singapore-based economist at HSBC, said in Wednesday’s note. “Things will continue to improve from here on, given the impact of the massive policy easing, the bulk of which was delivered in the later part of 2008, and improvement in global growth outlook.”

The State Bank of Vietnam cut its benchmark lending rate to 7 percent in February from 14 percent in October 2008. The key interest rate may be maintained at its current level until the third quarter of 2010, according to HSBC.

Vietnam’s economy grew 4.5 percent in the second quarter from a year earlier, up from 3.1 percent in the previous three months, the statistics office said last week. For the first half, gross domestic product expanded 3.9 percent.

Exports fell 10 percent to US$27.6 billion in the first six months, but in May and June exports grew 3.2 and 6.5 percent month-on-month, figures from the Ministry of Planning and Investment showed.

“The economic picture during the first half proved that the government’s stimulus measures began to take effect,” the research team of Ho Chi Minh City-based Saigon Securities Inc. wrote in a report dated July 6.

“The loosened monetary policies together with the interest-rate subsidy program played an important role in helping the economy through the most difficult times,” the team said. It forecast the economy could expand by up to 4.9 percent this year.

The economy is improving, Prime Minister Nguyen Tan Dung said in a statement posted late Tuesday on the government’s website that called for topping a 5 percent growth target that had been revised down earlier this year from an initial goal of 6.5 percent.

Stimulus measures

more info-->>Vietnam latest news - Thanh Nien Daily

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They say "

“I can’t say what made me fall in love with Vietnam - that a woman’s voice can drug you; that everything is so intense. The colors, the taste, even the rain. Nothing like the filthy rain in London. They say whatever you’re looking for, you will find here. They say you come to Vietnam and you understand a lot in a few minutes, but the rest has got to be lived. The smell: that’s the first thing that hits you, promising everything in exchange for your soul. And the heat. Your shirt is straightaway a rag. You can hardly remember your name, or what you came to escape from. But at night, there’s a breeze. The river is beautiful. You could be forgiven for thinking there was no war; that the gunshots were fireworks; that only pleasure matters. A pipe of opium, or the touch of a girl who might tell you she loves you. And then, something happens, as you knew it would. And nothing can ever be the same again.”
― Graham Greene, The Quiet American

Tips on Travel to Vietnam

It's always warm in Southeast Asia apart from high mountains, so leave the heavy clothing at home. Cotton and breathable fabrics are always better than synthetics -- although cotton does wrinkle a lot when traveling! December through April is roughly the dry season in that region, although it can still rain a little. December is a good time to go in terms of temperature -- cooler than in the humid summertime. Either way, wearing more clothing (shirt sleeves and long pants) is always more respectful towards the Asian culture, especially when visiting temples and rural areas.