An economic slowdown on external challenges

November economic report underscores early developments in a time of high global uncertainty. On the external front, exports slowed down further as overseas orders waned, as noted in recent PMI reports. FDI also saw a downturn in both implementation and registration, with multinational corporations likely adopting a cautious “wait-and-see” approach due to concerns over potential universal tariffs under President Trump’s administration, which could reshape global value chains and trade flows. Domestically, retail sales slightly decelerated, as rising electricity and rental costs, coupled with stalled improvements in industrial labor hiring, have constrained consumers’ purchasing power, leading to more cautious spending. These combined factors illustrate the multifaceted pressures Vietnam faces as it navigates an evolving economic landscape shaped by global challenges.