Vietnam: growth accelerates to 8 percent in 2025 despite US tariffs

Vietnam reported an 8 percent growth in its gross domestic product (GDP) for 2025 on Monday, driven by services, construction and exports, despite the impact of US tariffs.

“The 2025 GDP is expected to post significant growth, estimated at 8.02 percent compared to the previous year,” the Statistics Bureau said in a statement.

For several years, Vietnam has been one of Asia's fastest-growing economies. This growth accelerated last year despite new tariffs imposed by the US, its main export market, on a range of products including apparel and footwear.

The country has recorded its fastest growth since 2022, following a 5.1 percent increase in its GDP in 2023 and 7.1 percent in 2024. The country recorded exports of approximately 475 billion dollars last year, an increase of 17 percent year-over-year. Imports totalled 455 billion dollars, up 19 percent compared to 2024, primarily from China, according to the bureau.

In July, Vietnam negotiated relatively low tariffs of 20 percent with the US. This was down from the previously announced rate of over 40 percent. The agreement was made in return for opening its market to US products, particularly cars.

“Despite the potential risks from tariffs imposed by the US, Vietnam has shown resilience, supported by strong domestic consumption, growth in business investment and public spending,” said Chad Ovel, a partner at private equity firm Mekong Capital. The 2025 growth “reflects the strong and persistent fundamentals of the Vietnamese economy as well as the government's pro-private sector stance,” Ovel told AFP on Monday.

This article was translated to English using an AI tool.

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