Vietnam will officially raise its 2025 GDP growth target to at least 8.0%, up from the previous range of 6.5%-7.0%, driven by stronger performance in industrial manufacturing, according to Nguyen Chi Dung, the Minister of Planning and Investment on Wednesday.
This updated target comes as Vietnam, an economy heavily reliant on exports, faces challenges from escalating global trade tensions, including new tariffs on its steel exports to the United States. Both imports and exports are expected to grow by 12% this year, with a trade surplus projected at $30 billion, Dung said in parliament.
In addition, Dung stated that Vietnam would encounter a mix of opportunities and challenges this year, “but the challenges are more prominent, threatening to leave significant impacts on the economy.”
ANZ Research noted on Wednesday that the combination of US tariffs, weak demand in China, and a strong US economy is reshaping the export landscape for Asian economies, Reuters news agency reports.
According to US data, Vietnam's trade surplus with the United States reached a record high of over $123 billion last year.
“Vietnam stands out as the most exposed to higher across-the-board US tariffs and being a priority target if the US focuses on economies among the top contributors of the US trade deficit,” ANZ Research said.
The Southeast Asian nation grew 7.09% last year, making it one of the fastest-growing economies in Asia.
Furthermore, Dung said that industrial manufacturing and foreign investment would drive this year’s economic growth, with the industrial production and construction sector projected to grow by 9.5%.
Foreign investment inflows are expected to reach $28 billion, while domestic retail sales are anticipated to increase by 12%, he added.
“We will also prioritise keeping inflation under control and ensuring macro stability,” Dung added.
He forecasts that inflation would range between 4.5% and 5.0% this year.
The updated GDP growth target is still pending approval from parliament, which started its week-long meeting on Wednesday.