ANN/VIETNAM NEWS – Vietnam is standing firm on its ambitious goal of eight per cent gross domestic product growth in 2025, despite mounting global uncertainties and the looming risk of steep United States (US) tariffs.
A government resolution issued on April 10 underscored the country’s determination to stay the course, backed by coordinated, flexible policies aimed at weathering external shocks.
The country faces multiple challenges, including geopolitical tensions, trade disputes, supply chain disruptions, inflation, and extreme weather.
Despite this, authorities are urging ministries, provinces, and businesses to remain optimistic and proactive.
Thirty-seven provinces and cities that missed first-quarter growth targets have been instructed to reassess their strategies for the year.
A key concern is the potential imposition of US reciprocal tariffs – possibly as high as 46 per
cent. While Washington has granted a 90-day reprieve, Vietnamese officials stress that the urgency to act remains.
According to the General Statistics Office, Vietnam’s exports to the US were valued at USD119.6 billion in 2024, making it the country’s largest export market and accounting for nearly 30 per cent of total exports.
The trade surplus with the US stood at USD104.6 billion.
Given the significance of US trade as a key economic driver, any new tariffs could have serious consequences for Vietnam’s major export sectors and overall growth.
In response, the Ministry of Finance is preparing support packages for affected workers and businesses, including a proposed extension of VAT reductions from July 2025 through to the end of 2026. The State Bank of Vietnam is also planning to manage exchange rates flexibly and ensure access to credit for firms under pressure.
Deputy Director of the Institute of Vietnam and World Economy Phi Vinh Tuong said the politicisation of trade policy – particularly amid ongoing US-China tensions – had disrupted financial markets and weakened investor confidence.
“For an economy as open as Vietnam’s, the impact is immediate, especially for foreign-invested enterprises which have long been the backbone of our export sector,” Tuong told Vietnam News.
