11M25: Economic activity slows amid natural disasters

Vietnam’s economic landscape in November revealed both the destructive force of natural disasters and the resilience of the domestic economy in the face of climatic shocks. Most key indicators deteriorated, as export–import activity, FDI inflows and retail sales all reflected the tangible impact of floods and storms, while inflation accelerated sharply due to food price surges following widespread crop damage. Yet, despite these setbacks, the underlying momentum remains intact. The disruptions were largely temporary, with producer sentiment improving, tourism activity continuing to strengthen and industrial production maintaining a solid pace. As 2025 closes under the shadow of severe weather events, Vietnam’s steadfast internal fundamentals stand out as a source of stability after a turbulent year, providing grounds for optimism that clearer skies lie ahead.