By John Meyer, consultant in financial affairs – Eurasia Business News, May 17, 2025. Article No 1523.
Photo : Hanoi, Vietnam. credits : Swann Collins, April 2025.
Vietnam has reaffirmed its ambitious economic growth target of 8 percent or higher for 2025 despite significant challenges posed by U.S. tariff policies. Prime Minister Pham Minh Chinh emphasized the government’s commitment to this goal amid the impact of a hefty 46 percent tariff imposed by the United States on Vietnamese exports, which threatens the country’s export-reliant economy and global supply chains.
On May 17 Vietnam and the United States held their first direct ministerial-level negotiations on Friday against the backdrop of an impending U.S. tariff of 46% on imports from the Southeast Asian nation, which could significantly impact its growth.
The U.S. has agreed to postpone the implementation of the 46% tariff on Vietnam until July.
The U.S. remains Vietnam’s largest export market, accounting for around 30 percent of its GDP, making the tariffs a substantial obstacle. In response, Vietnam is actively negotiating with the U.S. to secure balanced trade relations while protecting its legitimate rights and interests and ensuring compliance with international agreements.
Despite the tariff-induced uncertainties and a slowdown in first-quarter GDP growth to 6.93 percent from 7.55 percent in late 2024, the government plans to manage macroeconomic factors flexibly, including currency and interest rates, to support demand and growth. It also aims to diversify export markets and products, boost infrastructure development such as high-speed rail and nuclear power plants, and attract foreign investment in high-tech sectors like semiconductors and artificial intelligence.
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The Prime Minister views this challenging period as an opportunity to restructure the economy towards sustainable growth and reduce dependence on vulnerable export sectors affected by tariffs, such as textiles and wooden furniture.
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While the U.S. tariffs present a significant challenge, Vietnam remains resolute in maintaining its 8 percent growth target for 2025 through strategic economic restructuring, market diversification, and active negotiations with trade partners.
In an attempt to attract more skilled professionals and investors, Vietnam has announced it will introduce a new 10-year golden visa program. The Southeast Asian country is looking to attract long-term residents, investors and tech professionals from around the world.
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© Copyright 2025 – Eurasia Business News. Article no. 1523.
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