Vietnam’s economy remains on the road to recovery, Yuanta Securities Vietnam wrote in its latest macro-economic and stock market outlook report.

The most positive factor continues to be consumer demand, with total retail sales in July increasing 2.4 per cent against June and 42.6 per cent year-on-year. Of note, revenue in services, which has maintained increases for six months in succession, is on the cusp of returning to pre-Covid-19 levels.

Manufacturing and processing has maintained solid, uniform growth in all fields. Registered FDI increased year-on-year in July after dipping slightly, while disbursed capital grew by a handy 19.8 per cent year-on-year. This indicates positive signs in FDI inflows, which are expected to grow further as inflation and exchange rate pressures cool.

Domestic inflation rose again in July, but with inflationary pressure easing in some developed countries, global oil prices have fallen, and the government is implementing measures to cut taxes on gasoline, which will help the fight against inflation domestically.

In general, Vietnam’s economy maintained recovery momentum in July, especially in tourism and consumer services. Growth will improve further in the months to come as inflation cools and the exchange rate becomes more stable. The Yuanta Securities Vietnam report also assessed that the stock market is gradually recovering and forecast that the VN-Index would reach 1,388-1,418 points during August.