Vietnam: Exports and consumption stay robust – DBS

DBS Group strategists Taimur Baig and Nathan Chow forecast Vietnam’s goods exports to maintain strong double-digit growth at 27% year-on-year in August 2026, led by electronics and supported by external demand. Retail sales and tourism-related spending are seen as resilient, while headline inflation is expected to hold at 4.4%, below May’s peak but still elevated due to firm food and housing costs.

Electronics exports drive strong momentum

“We expect Vietnam’s goods exports to extend their run of robust double-digit growth, expanding by 27.0% yoy in August 2026, up from 25.0% yoy in July, driven primarily by strong electronics shipments amid supportive external demand.”

“Retail sales likely remained strong in the year to August, supported by resilient domestic consumption and tourism-related spending.”

“We see headline inflation holding at a still-elevated 4.4% yoy in August, although this would be below May’s peak of 5.6% yoy, as transport price increases have eased from the recent high, while food and housing inflation remained firm.”

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor. Know more.)