Vietnam Q2 GDP and June data likely to show steady growth

Vietnam to release Q2-2015 GDP data and key June data from 25-30 June, and June inflation data on 24 June.

The FDI outlook is encouraging given the country's rising profile as a regional manufacturing hub. 

"A steady GDP growth of 6.2% y/y in Q2 is expected, up from 6.0% in Q1-2015 and 5.2% in Q2-2014 and inflation of 0.8% y/y in June, down from 0.95% in May, on a low base effect and subdued demand, we forecast that the industry/construction sector led growth in Q2", says Standard Chartered. 

Food prices, the largest component of the CPI basket, have been muted so far in Q2. The benign inflation outlook should provide room for policy rate cuts in 2015. 

Industrial production, export and import growth are expected to have picked up y/y, versus May. Retail sales likely fell 8.8% y/y in June on subdued domestic demand.