HANOI, Oct 5 (Reuters) – Vietnam’s economy expanded by 8.22% year-on-year in the third quarter, despite the implementation of a 20% U.S. tariff on most of its exports starting August 7, marking an increase from the 7.96% growth recorded in the previous quarter. According to government officials, this is the strongest quarterly performance since 2011, not counting the exceptional rebound seen in 2022 following the pandemic.
Finance Minister Nguyen Van Thang highlighted the resilience of the economy under external pressures. Over the first nine months of the year, the nation’s GDP rose 7.84% compared to the same period in 2024. Total trade volume exceeded $680 billion, reflecting a 17% rise from the previous year, while a trade surplus of $16.8 billion was achieved.
Although detailed trade statistics were not included in the initial release, a full dataset is expected to be published by the National Statistics Office on Monday. The U.S. duties, introduced under the Trump administration, could potentially reduce Vietnam’s exports to America by up to 20%, according to a United Nations Development Programme assessment, positioning Vietnam as one of the most affected nations in Southeast Asia.
Nonetheless, authorities remain committed to ongoing trade discussions with Washington. Prime Minister Pham Minh Chinh previously projected export growth of over 12% for the year.
The quarter was also impacted by adverse weather, including eight storms such as Typhoon Bualoi, which caused approximately 16.5 trillion dong ($625.5 million) in damages. Looking ahead, the government forecasts full-year GDP growth between 8.3% and 8.5%, surpassing both the 7.09% recorded last year and projections from the World Bank and IMF, which estimate 6.6% and 6.5% respectively.
Officials cautioned that challenges remain, including global economic uncertainties, sluggish domestic reforms, and worsening natural disasters expected in the coming months. Inflation stood at 3.38% in September, with the average consumer price increase for the first nine months at 3.27%.
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Vietnam economy grows 8.22% in third quarter, despite US tariffs
HANOI, Oct 5 (Reuters) – Vietnam ‘s government said on Sunday its economy grew at an annual rate of 8.22% in the third quarter, when a 20% tariff on U.S. imports of its products took effect, accelerating from growth of 7.96% in the second quarter. n n”It is the highest quarterly growth since 2011, excluding the surge in 2022 due to recovery post COVID-19 pandemic,” Finance Minister Nguyen Van Thang said in a government statement. n nSign up here. n nVietnam ‘s total trade turnover, which includes imports and exports, surpassed $680 billion in the first nine months of this year, up 17% from a year earlier. The country posted a trade surplus of $16.8 billion during the same period, the government said. n nSunday ‘s economic release did not include comprehensive trade data, a key variable as a 20% U.S. import tariff on most Vietnamese goods imposed by the Trump administration took effect on August 7, midway through the quarter. n nThe National Statistics Office is expected to release a full set of economic data, including detailed trade figures, on Monday. n nPrime Minister Pham Minh Chinh said last month Vietnam expected exports to grow more than 12% this year. But a United Nations Development Programme report said U.S. duties risked slashing by up to one-fifth of Vietnam ‘s exports to the United States, making it the hardest-hit country in Southeast Asia. n nVietnam would continue trade negotiations with the United States, the government and its trade ministry have said. n nThe third quarter was also marked by severe weather disruptions, with eight storms hitting the country, including Typhoon Bualoi, which caused an estimated 16.5 trillion dong ($625.5 million) in damage. n nOver the first nine months of the year, GDP grew 7.84% compared to the same period in 2024, according to the government. n nVietnam is targeting gross domestic product growth of 8.3% to 8.5% this year. That is faster than last year ‘s 7.09% growth, and higher than the World Bank ‘s forecast of 6.6% and the International Monetary Fund ‘s estimate of 6.5% growth. n nThe country ‘s 2025 growth faces headwinds from external economic pressures and slow-moving reforms, the government statement said. It also warned of escalating natural disasters that are expected to worsen in the final months of the year. n nConsumer prices rose 3.27% year-on-year in the January–September period, with September inflation at 3.38%, it said. n n($1 = 26,380 dong) n nReporting by Phuong Nguyen; Editing by Jamie Freed and Lincoln Feast