Vietnam Macro Update in August 2025 and key information in mid-September

Summary of key information:

• The Federal Reserve cut interest rates as the U.S. economy shows signs of weakness in the labor market, while China’s economy remains in a restructuring process despite some bright spots.
• New geopolitical hotspots have emerged globally. In Europe, protests are intensifying around immigration and fiscal policy issues in the UK and France. In Asia, notable issues included in Nepal, Indonesia, and the Philippines.
• Vietnam’s economy has continued to grow well in recent times, supported by loose monetary and fiscal policies. However, pressures on the financial market, especially in the foreign exchange segment, are mounting. The VND has continued to depreciate against the USD, weakening about 3.4% as of mid-September. This comes in the context of the DXY Index falling about 10.4% year-to-date, while many major and regional currencies such as the EUR, CNY, JPY, THB, and MYR have strengthened. The continued depreciation of the VND against the USD signals certain concerns regarding capital flows in Vietnam.
• Foreign institutions continue to withdraw from Vietnam despite expectations of an FTSE market upgrade. The market has largely priced in most positive information and is currently consolidating around new potential catalysts.
• Vietnam remains an attractive destination thanks to its stability and diversification. We believe the long-term opportunities in Vietnam’s stock market remain very clear. However, investors should remain prudent and well-prepared as the rumor-driven phase of the market passes, exercising patience in selecting and holding attractive opportunities to capture strong long-term growth alongside Vietnam’s economy.

(EN) GTJASVN_Macro Report_Vietnam Macro in August and Mid-Sep Key Updates