FX.co ★ IMF Trims 2025 Vietnam Growth Forecast to 6.5% on U.S. Tariff Hit

Vietnam's economic growth is anticipated to decelerate to 6.5% this year, declining from the 7.09% projected for 2024, primarily due to the ramifications of U.S. tariffs, according to the International Monetary Fund on Tuesday. The organization cautioned about significant "downside risks," referencing the rollback of temporary government stimulus and the potential repercussions from intensifying global trade tensions or more stringent financial conditions. These factors, as highlighted by the IMF, could further suppress exports and investment. The forecast indicates ongoing pressure on Vietnam's export-driven economy amidst evolving global trade landscapes and policy challenges. In the second quarter, Vietnam's GDP demonstrated robust growth, increasing by 7.96% year-on-year, up from a 6.93% rise in the first quarter, registering the fastest growth rate since the third quarter of 2022, with major sectors such as services, industry, and agriculture all showing stronger expansion.