Vietnam's short-term outlook took a positive turn after the Trade Confidence Index rose to 120 in the first half of this year, its highest in three-and-a-half years, in HSBC's release of its latest trade survey on Wednesday.
Almost half of the survey respondents said they expect trade flows to increase over the next six months; a third cited higher demand from key markets as the main reason.
HSBC estimated that textiles and garments will continue to dominate Vietnam’s exports, although shipments of information communication technology (ICT) products will also grow strongly.
Vietnam’s advanced technological infrastructure has helped the garment sector advance into higher value clothing lines, the bank noted.
“Led by these two industries we expect exports to grow by more than 11 percent per year between 2014 and 2020,” according to the report.
More than 50 percent of survey respondents cited the costs of essential services such as shipping, logistics and storage as a barrier to expanding trade and almost a third cited rising interest rates.
Less than a quarter, however, complained of a lack of demand.
Six months ago, half the respondents complained of sagging demand.
“Vietnam has made good progress in improving its business environment over the last decade but it is crucial that these efforts continue,” the HSBC report said.
Vietnam reaped export revenues of $97 billion between January and August -- up 14.1 percent over the same period last year, according to the General Statistics Office.