Vietnam will be among the top five international powerhouses which will drive world trade growth until 2025 as its trade volume is expected to grow 144 percent by then, the HSBC says in a new report.
The other four major trade powerhouses are Egypt, India, Indonesia and mainland China, according to the latest quarterly HSBC Trade Connections report, which notes that Asia will be the key driver of world trade growth.
Noel Quinn, Regional Head of Commercial Banking Asia-Pacific, said international trade is set to increase despite current economic uncertainty. "Whilst traders recorded a dip in confidence levels for the next six months, companies must prepare themselves now for the expanding trade markets across the world and especially within the Asia-Pacific region," he said.
Vietnam's trade volume will grow from the current value of US$108.1 billion to $282.5 billion at the end of 2015, the report said.
China, the US, Japan, Singapore and Korea are Vietnam's top five trading partners and trade with all of them will grow in volume terms over the next 15 years, with China topping the list, it said.
HSBC also said Vietnam's confidence index remains positive, ranking seventh in the global confidence index and third in Asia. The index for Vietnam now stands at 115 points, compared to 116 in the first half of 2011.
The HSBC Trade Confidence Index revealed that 41 percent of respondents in Asia expect the global economy to decline within six months, but 83 percent anticipate either an increase in international trade volumes, or consistent levels of international business activity.
Indonesia became the most confident market globally, HSBC said, while businesses in Singapore, China and India showed the largest drops in confidence.
Businesses in Australia, Singapore, Vietnam and mainland China are concerned about buyers defaulting on payments and intend to request advanced payments or tighten payments terms from their suppliers, the bank added.