Vietnam economy grows 8.22% in third quarter, despite US tariffs

HANOI: 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.

“It is the highest quarterly growth since 2011, excluding the surge in 2022 due to recovery post COVID-19 pandemic,” the government statement said, citing Finance Minister Nguyen Van Thang.

Sunday’s economic release did not include 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, mid-way through the quarter.

The National Statistics Office is expected to release a full set of economic data, including trade figures, on Monday.

Prime Minister Pham Minh Chinh said last month Vietnam expected exports to grow more than 12% this year, following a United Nations Development Programme report saying that 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.

Vietnam would continue trade negotiations with the United States, the government and its trade ministry have said.

The 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.

Over the first nine months of the year, GDP grew 7.84% compared to the same period in 2024, according to the government.

Vietnam is targeting gross domestic product growth of 8.3%-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.

The country’s 2025 growth faces headwinds from external economic pressures, slow-moving reforms and escalating natural disasters, which are expected to worsen in the final months of the year, the government statement added.

Consumer prices rose 3.27% year-on-year in the January–September period, with September inflation at 3.38%, it said.