Macro/ Strategy

Vietnam economy has showed more positive signals in August 2023. Manufacturing returned to growth  with PMI first time moved back to over threshold of 50 in six months, export gradually recover with average growth rate of 3.8%MoM in the last 4 months. Besides, retail sales of 8M2023 maintained upward momentum with growth rate of 10%YoY, investment activities flourished with disbursed investment from the State Budget reached VND 352.1 trillion (+29.1%YoY) and disbursed FDI reached USD 13.1 billion (+1.3%YoY), the highest level of FDI disbursement of 8 months in the last 5 years.

However, the rise of global oil and rice prices have challenged inflation. Headline CPI in August 2023 surged 0.88%MoM and 2.96%YoY. Average headline CPI of 8M2023 was still under control with an increase of 3.1%YoY and fluctuation of VND/USD exchange rate on domestic market also recorded a moderate increase of 2.15%YTD despite USD price skyrocketed on world market.