In local data prints, Vietnam’s GDP growth expanded 7.72% YoY in Q2 2022, beating the government’s 6% to 6.5% target. Exports rose 21% from the previous year, and imports increased 15.7%. The country’s annual inflation rate surged to a two-year high of 3.37% in June from 2.86% in May. The government targets average inflation of 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. Meanwhile, FDI into the country expanded 8.9% YoY in Q2 2022 as the country is emerging as an attractive destination for foreign investment amid trade disruptions from China, the war in Ukraine and lingering tensions between China and the US.