Vietnam Revises GDP Growth Target

HANOI (Reuters) – Vietnam will officially revise up its gross domestic product growth target for 2025 to at least 8.0% from 6.5%-7.0%, driven by stronger industrial manufacturing, Minister of Planning and Investment Nguyen Chi Dung announced on Wednesday.

The new target comes as Vietnam, an export-reliant economy, confronts risks from intensifying global trade disputes, including new duties on its steel exports to the United States. Imports and exports are both expected to grow 12% this year, Dung stated in parliament, adding that the trade surplus is estimated at $30 billion.

Dung indicated that Vietnam would face a mixture of opportunities and challenges this year, but he emphasized that “the challenges are more prominent, threatening to leave significant impacts on the economy.”

ANZ Research noted that the combination of U.S. tariffs, weak demand in China, and a strong U.S. economy is altering the export environment for Asian economies. Vietnam’s trade surplus with the United States reached a record high of more than $123 billion last year, according to U.S. data.

“Vietnam stands out as the most exposed to higher across-the-board U.S. tariffs and being a priority target if the U.S. focuses on economies among the top contributors of the U.S. trade deficit,” ANZ Research stated.

The Southeast Asian country grew 7.09% last year, making it one of the fastest-growing economies in Asia.

Dung also said that industrial manufacturing and foreign investment will lead this year’s economic growth, noting that the industrial production and construction sector is expected to grow 9.5%.

Foreign investment inflows are anticipated to be $28 billion, while domestic retail sales are projected to rise 12%, according to Dung.

“We will also prioritize keeping inflation under control and ensuring macro stability,” he added. He projected inflation to be between 4.5%-5.0% this year.

The revised GDP growth target is subject to approval from the parliament, which began a week-long meeting on Wednesday.