8M26: Steady expansion amid external headwinds

Vietnam’s economy maintained firm momentum in August. On the positive front, industrial production expanded vigorously, while retail sales accelerated on surging hospitality demand ahead of the National Day festivities. In terms of improvements, the trade deficit narrowed sharply toward near-balance as import pressures eased, and additional FDI capital rebounded to cushion an overall slowdown in inflows. Conversely, headwinds resurfaced as consumer inflation jumped following higher fuel prices, accompanied by softer export orders amid lingering geopolitical tensions.