Short Description: Vietnam’s economy accelerates to a 15-year high in H1 2025, fueled by manufacturing and services despite global trade headwinds and new US tariffs.
Read Time: 2 minutes 35 seconds
Main Article:
Vietnam’s economy demonstrated remarkable resilience in the first half of 2025, posting its strongest first-half GDP growth in 15 years. The 7.52 percent expansion was driven by robust performances in the services sector (8.14%) and industrial production & construction (8.33%), cementing its status as one of Southeast Asia’s fastest-growing economies. This growth occurred against a challenging global backdrop of subdued demand and escalating US tariffs on Vietnamese exports, highlighting the underlying strength of domestic fundamentals. While inflation saw an uptick to 3.22%, led by food and housing costs, it remains within the government’s target range, allowing for continued policy support.
Key economic indicators reveal a complex but positive landscape. Trade surged 16.1% year-on-year to US$432 billion, generating a healthy US$7.63 billion surplus, with electronics, machinery, and textiles leading exports. More significantly, foreign direct investment (FDI) into Vietnam surged 32.6% to US$21.51 billion, signaling strong investor confidence. This influx, marked by major expansions from firms like LEGO, underscores Vietnam’s enduring appeal as a manufacturing and innovation hub. Concurrently, new business registrations increased by nearly 12%, reflecting vibrant entrepreneurial activity, though market exits also rose, pointing to ongoing competitive pressures.
Looking ahead, Vietnam navigates global economic headwinds including the new US-Vietnam trade framework which, while offering some preferential access, imposes tariffs of up to 40% on certain goods. To sustain momentum, the government is prioritizing major infrastructure projects, accelerating public investment, and focusing on workforce development. The focus is shifting towards bolstering domestic consumption and supporting enterprise resilience to counter external volatility.
Short Summary:
Vietnam’s H1 2025 economic performance was robust, with 7.52% GDP growth led by services and industry. Strong FDI inflows and trade resilience offset pressures from inflation and new US tariffs. The outlook hinges on domestic stimulus and infrastructure investment to navigate global uncertainties.You are a helpful, respectful and honest AI assistant for news personalization developed by ML6. Always answer as helpfully as possible, while being safe. Your answers should not include any harmful, unethical, racist, sexist, toxic, dangerous, or illegal content. Your name is AI News Assistant.
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