According to Vietnam’s General Statistics Office, the country’s GDP expanded 7.72% YoY in Q2 2022, beating the government’s 6% to 6.5% target. Exports grew 21% from the previous year, and imports increased 15.7% from the previous year. The country’s annual inflation rate increased to a two-year high of 3.37% in June from 2.86% in May. The government targets average inflation at 4% in 2022. Underpinning the recovery has been the government’s $15bln worth of fiscal stimulus, and an easy monetary policy in a world where central banks have turned hawkish. The country is emerging as an attractive alternative destination for foreign investment amid trade disruptions from China, the war in Ukraine and lingering tensions between China and the US.