Vietnam Macroeconomic Performance in August 2026
Vietnam’s macroeconomic picture remained broadly positive in August 2026, despite the global economy facing dual pressures from rising inflation and weakening growth. Manufacturing, trade, FDI and the stock market continued to maintain their improving momentum, while inflation and interest rates remained key areas of concern.
Macroeconomic Overview – August 2026: Recovery Momentum Strengthens, Inflation Risks Remain
Manufacturing activity continued to strengthen. Vietnam’s Manufacturing PMI rose to 53.3 points, the highest level since February 2026, supported by improvements in output and new orders. The index remained above the 50-point threshold for the 14th consecutive month. Meanwhile, the Industrial Production Index (IIP) increased 14.4% YoY in August and 11.9% YoY in 8M2026.
Trade activity improved, with total trade turnover increasing 31.7% YoY and the trade deficit narrowing to USD 0.1 billion in August, the lowest level in nine months. The improvement was primarily driven by the FDI sector.
FDI inflows remained at record-high levels cumulatively. In 8M2026, registered FDI reached USD 40.6 billion (+55.4% YoY), exceeding total registered FDI for full-year 2025. Disbursed FDI reached USD 17.3 billion (+12.0% YoY), the highest level in five years. FDI inflows increasingly focused on expanding existing projects and high-tech manufacturing.
Public investment disbursement accelerated, reaching 50.2% of the annual plan in 8M2026. The pace of disbursement improved markedly compared with previous months, indicating that public investment implementation was entering its peak period in 2H2026.
However, inflationary pressures returned after two consecutive months of easing. August CPI increased 4.89% YoY, while average CPI in 8M2026 rose 4.45% YoY, only 0.05 percentage points below the National Assembly’s target of around 4.5%. The increase was mainly driven by the transportation group following domestic fuel price adjustments.
In the equity market, the VN-Index rebounded strongly in August, rising 5.55% MoM to 1,832 points, with gains broad-based across sectors. The recovery was supported by domestic policy measures, a return of foreign capital, positive corporate earnings and easing margin pressures.
Overall, Vietnam’s economy maintained positive momentum in August, with manufacturing, trade, FDI and public investment providing important support. At the same time, the renewed rise in inflation and elevated interest rates remain key factors to monitor in the coming period.
For further analysis and detailed data, please click the link below to read the full report of PVI AM: Macro_Monthly Update_August_2026_EN
