Tet may mask a stronger economic performance

Vietnam’s economy showed resilience in January despite global trade war concerns. Accounting for a 22.7% reduction in working days due to Tet, our analysis suggests that export activities and industrial production remained robust. Furthermore, both implemented and registered FDI saw meaningful growth, reinforcing Vietnam’s position as a favored destination for foreign investors amid rising global uncertainties. On the downside, a 9.5% increase in retail sales during Tet raises concerns about domestic purchasing power. However, we expect gradual improvement as the labor market strengthens, supported by steady growth in the construction sector seen in recent months.