Market Highlight 07.08.2026

Retail sales in Europe declined in June, reflecting the prolonged impact of the war in Iran on consumer confidence. According to data released by the European Union’s statistical agency on Thursday, total sales fell by 0,3% from the previous month, marking the second decline in 4 months since the conflict began. The decrease was mainly driven by a 1,1% contraction in Germany and a 0,5% decline in France, the two largest economies in the euro area. Sales of food and beverages fell by 0,5%, while non-food product sales declined by 0,4%. By contrast, automotive fuel sales increased by 1,5% after oil prices fell as tensions in the Middle East eased. The European economy outperformed U.S growth in Q2, although the June retail sales data reinforced the view that consumption was not the main growth driver. However, much of the slowdown in consumption was caused by uncertainty stemming from the Middle East conflict rather than a deterioration in purchasing power due to rising inflation. This could support an improvement in consumer spending if the Strait of Hormuz reopens and energy prices continue to decline.

According to the Statistics Office, total registered FDI into Vietnam as of 31/7 reached 38,06 billion USD, up sharply by 58% from the same period last year. Of this, 2.429 newly licensed projects recorded total registered capital of 21,05 billion USD, representing increases of 7,8% in the number of projects and 2,1 times in capital value. Notably, disbursed FDI was estimated at 15,20 billion USD, up 11,8% from the same period and the highest level recorded in the first 7 months of the past 5 years. Ho Chi Minh City alone attracted more than 9,8 billion USD in FDI as of 24/7, up 144,5%. Following the expansion of its development space, the city is expected to attract 10 - 12 billion USD in FDI by the end of Q3.

Interbank USD/VND fell by a further VND 15 to 26.335 on Thursday. The SBV continued to raise the effective daily ceiling by another VND 29 to 26.704.

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