Viet Nam Macro Monitoring

Overview & Synopsis

Economic activity remains strong, supported by well-anchored inflation, steady interest rates, and a broadly stable macroeconomic environment. Industrial production rose by 8.5 percent y/y and the manufacturing PMI in July 2025 returned to expansionary territory, after four consecutive months of contraction. Nevertheless, domestic consumption has moderated as retail sales have flattened. While foreign direct investment (FDI) disbursements remained resilient, trade uncertainties weighed on new commitments. Public investment surged in July 2025, reflecting both higher than planned spending and streamlining of project approval and disbursement processes. These investments are expected to support Viet Nam’s high-growth objectives. Recently, the government has revised its 2025 gross domestic product (GDP) growth target upwards to 8.3-8.5 percent (Resolution No. 226/NQ-CP, issued on August 5, 2025), above the target of 8 percent announced in early 2025.