Vietnam’s Economy Surges Despite US Tariff Challenges
Vietnam’s economy demonstrated remarkable resilience in the third quarter, posting an 8.23% year-on-year GDP growth despite the impact of recent US tariffs, official data revealed on Monday.
The Southeast Asian nation’s economic performance exceeded expectations, surpassing the previously reported 8.19% growth rate in Q2. This robust expansion aligns with the government’s ambitious target of 8.3%–8.5% annual growth, though it outpaces projections from international financial institutions like the World Bank (6.6%) and IMF (6.5%).
Export Sector Faces Mixed Performance
While overall exports rose by 18.4% to $128.57 billion in Q3, the US market showed signs of weakness. September exports to the US declined by 1.4% month-on-month, marking the second consecutive monthly drop due to the 20% tariffs imposed in early August.
The footwear industry was particularly affected, with shipments to the US plummeting by 27% in September alone. Textile exports also fell by 20%, although these losses were partially offset by increased shipments of coffee, chemicals, and electronics.
Key Drivers of Growth
Several sectors continued to fuel Vietnam’s economic expansion:
- Foreign direct investment reached $18.8 billion, marking the highest level in five years
- Industrial production grew by 9.1% over the first nine months
- Tourism saw a 21.5% increase in foreign arrivals, totaling 15.4 million visitors
- Retail sales expanded by 11.3%
Inflation remained within target range, with consumer prices rising 3.38% year-on-year in September, well below the 4.5%–5.0% government objective.
The positive economic data led to a 2% rise in Vietnam’s stock market on Monday, reflecting investor confidence in the country’s economic fundamentals.
