Daily COVID-19 cases bounced to nearly 2,800 in the second half of August. Daily COVID-19 cases bounced to nearly 2,800 in the second half of August, from around 1,500 as of the end of July, after several months in which all activities had returned to normal. Nevertheless, Vietnam’s daily figures contrast favorably with the recent surges seen in some other countries in the region such as Japan (~140,000 daily cases) or South Korea (~100,000 daily cases).

Production regains growth momentum while cost inflation softens. Overall IIP rose 2.9% MoM and 15.6% YoY in August, bringing IIP growth in 8M 2022 to 9.4% YoY. According to S&P Global, the Vietnam Manufacturing Purchasing Managers' Index (PMI) increased to 52.7 from 51.2 in July. The PMI findings point to the possibility of a robust recovery in Vietnam's manufacturing operations in September. However, the current global economic slowdown could cause some headwinds for Vietnam’s external trade in future months. Nevertheless, easing input cost inflation could reduce margin pressure on firms to some extent.

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