US$ will still be the currency of choice in global trade: Experts

While around 50 per cent of global trade is dominated by the Chinese Yuan or Renminbi ( currency), it is unlikely to replace the US dollar as the currency of choice across the world.

This was revealed during media questions to a team of HSBC Bank specialists from the region on Wednesday at the Shangri-La Hotel, Colombo during a media roundtable on ASEAN and its huge potential.

The HSBC team – Tim Evans, Head of International Countries – Asia Pacific based in Hong Kong; Vivek Deshpande, Regional Head of Sales (Hong Kong), Winfield W. Wong, Country Head of Wholesale Banking ( HSBCVietnam) and Stuart Rogers, Head of Wholesale Banking ( HSBC- Sri Lanka and the Maldives) – make a few introductory remarks on ASEAN as a medium of inbound and outbound investment and trade and fielded questions on a range of issues.

It was pointed out that ASEAN has seen steady growth of 5-6 per cent while consumerism is growing.

On Vietnam, seen as the fastest growing economy in Asia, it was revealed that GDP growth was 6 per cent and even better in 1stQ 2018 at 7.3 per cent.

What is contributing to the success of Vietnam? Answering his own question, Mr. Wong explained that the country not only had a stable government but one that is very pro- growth with 16 Free Trade Agreements ( FTAs) being signed with other countries in recent years.

Ranked very high in the “Ease of Doing Business Index”, the country has a growing middle class expected to reach 34 million by 2020, more than double that of 16 million in 2014.

“This is encouraging news for those investing in Vietnam,” he said adding that foreign investments in 2016 was $ 5.8 billion, which is a 44 per cent growth from 2016.

Responding to a query about t r ave l , he said most Vietnamese go to ASEAN countries like Thailand and Singapore because these are free-visa countries.

On other areas pertaining to ASEAN and global trade, it was pointed out that Fintech ( defined as computer programs and other technology used to support or enable banking and financial services) has seen exponential growth and is a key driver of the digital economy.

It was pointed out that ASEAN has seen steady growth of 5-6 per cent while consumerism is growing. On Vietnam, seen as the fastest growing economy in Asia, it was revealed that GDP growth was 6 per cent and even better in 1stQ 2018 at 7.3 per cent.