Preliminary government data released on Monday showed that Vietnam’s economy expanded by 8% in 2025, up from the previous year, driven by strong exports despite US tariffs. The country also recorded its largest annual trade surplus with the United States.

As one of the top exporters to the US, Vietnam is still negotiating a potential trade deal with Washington but has largely weathered the 20% tariffs imposed by the Trump administration aimed at reducing its significant trade surplus.

Vietnam’s total exports climbed 17% to around $475 billion in 2025, with shipments to the United States reaching $153 billion, well above the 2024 record of $119.5 billion, Reuters reports.

This contributed to an unprecedented trade surplus with Washington of nearly $134 billion last year, significantly exceeding the previous high in 2024, according to Vietnamese figures, which are typically more conservative than US data.

US trade data show that Vietnam’s surplus with Washington had already reached a record $129.5 billion by September, surpassing 2024’s full-year record of $123.5 billion.

Vietnam plays a crucial role in global supply chains, particularly for electronics, textiles, footwear, and other products.

Foreign multinationals like Samsung, Apple, and Nike manufacture their products in Vietnam, often using components and raw materials from China, before exporting them, primarily to the United States, Vietnam’s largest market.

Vietnam’s imports from China also hit a record $186 billion last year, up from $144.2 billion in 2024.

The Trump administration has accused Vietnam of serving as a transhipment hub for Chinese goods sent to the United States. US tariffs of 40% apply to goods deemed illegally transhipped, though the White House has yet to clarify the criteria for determining what constitutes illegal transhipment.

Vietnam’s economic growth of 8.02% in 2025, up from 7.09% in 2024, indicates that the US tariffs imposed from August, as well as widespread damage from repeated floods last year, had not immediately disrupted the country’s expansion.

Last year, the government aimed for an annual growth rate exceeding 8%.

In the fourth quarter, the economy expanded 8.46% year-on-year, up from a revised 8.25% in the third quarter, marking the strongest quarterly growth of 2025.