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3w ago

Vietnam's Economic Growth Slows as U.S. Tariffs Loom Large

First-quarter GDP growth dipped to 6.93%, with analysts warning U.S. tariffs could threaten Vietnam's export-driven economy and 2025 growth targets.

Shipping containers are loaded to a ship at a port in Hai Phong city, Vietnam July 12, 2018. REUTERS/Kham/File Photo
Labourers work at Hung Viet garment export factory in Hung Yen province, Vietnam December 30, 2020. REUTERS/Kham/File Photo
Nike shoes are seen displayed at a sporting goods store in New York City, New York, U.S., May 14, 2019. REUTERS/Mike Segar/File Photo
Labourers work at Hung Viet garment export factory in Hung Yen province, Vietnam December 30, 2020. REUTERS/Kham/File Photo

Overview

  • Vietnam's GDP growth slowed to 6.93% in Q1 2025, down from 7.55% in the previous quarter, reflecting early impacts of U.S. trade policies.
  • President Donald Trump announced a 46% tariff on Vietnamese exports to the U.S., targeting key industries like electronics, garments, and footwear.
  • Prime Minister Pham Minh Chinh reaffirmed the government's ambitious 8% GDP growth target for 2025 despite mounting economic challenges.
  • Exports grew 10.6% year-on-year in Q1 2025, but industrial production slowed to 7.8%, signaling mixed economic performance.
  • Analysts predict the U.S. tariffs could reduce Vietnam's GDP growth by up to 3 percentage points, jeopardizing its export-reliant economic model.