Vietnam GDP growth in 1Q2015 delivered 6.03% YoY, even higher than full year 2014 growth, despite of the fact that 1Q is conventionally the low season. As we expected, final consumption spearheaded growth (8.67% YoY) and the gain was paired with widened trade deficit. In April, Vietnam reverted back to a trade surplus, which provided a soft cushion for the local currency after the central bank depreciated the exchange rate twice (1% each) in January and May. The trade deficit in the 1Q15 was driven mainly by the FDI sector while the BOP remained in surplus. FDI disbursement is expected to be stable in 2015 (at average USD 1bn/month) and continue to target at manufacturing sector.
Vietnam Retail Sale Growth Breakdown 2009-2015
Source: General Statistics Office of Vietnam (GSO)
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