(Hanoi, 7th) Despite the shadow of U.S. tariff measures, Vietnam achieved 7.52% economic growth in the first half of this year, marking the highest level since 2011.
Data released by the National Bureau of Statistics of the Ministry of Finance of Vietnam on Saturday (July 5) showed that in the second quarter of this year, Vietnam's Gross Domestic Product (GDP) grew strongly by 7.96% year-on-year, the highest growth rate since 2022. This figure is also higher than the 7.05% recorded in the first quarter.
The Bureau stated in a declaration: “Against a backdrop of many uncertainties in the global and regional economy, Vietnam's socioeconomic performance in the second quarter and the first half of this year has achieved very positive results, coming close to the set targets.”
This undoubtedly is good news for the Vietnamese government. Vietnam’s economic performance for the full year is expected to reach at least the 8% growth target set by the government.
The data also showed that in the first half of this year, Vietnam attracted a total of $21.51 billion in foreign direct investment (FDI), an increase of 32.6% year-on-year, which is the highest level for the same period since 2009.
The Foreign Investment Agency of Vietnam indicated this fully reflects foreign investors’ confidence in Vietnam’s business environment. Many enterprises not only see Vietnam as a new destination for investment but are also willing to increase their investment in already successful projects.
However, authorities also noted that potential risks remain in the future, such as the U.S.-China trade conflict and new tax policies, which could affect capital flows.
Vietnamese Prime Minister Pham Minh Chinh previously stated that Vietnam’s economy still faces significant restrictions, difficulties, and challenges, and has therefore instructed all ministries and local governments to take strong measures to boost the economy and respond actively and flexibly to the U.S. reciprocal tariff policies.
In addition, Vietnam’s export performance has also been very strong. Data from the statistical bureau show that in the first half of this year, Vietnam’s total goods exports reached $219.83 billion, an increase of 14.4% year-on-year, with processed industrial goods accounting for nearly 90%. The United States remains Vietnam’s largest export market, with export value reaching $70.91 billion.
On Wednesday (2nd), the United States and Vietnam announced the conclusion of a trade agreement, whereby the U.S. will reduce reciprocal tariffs on Vietnamese products from the originally planned 46% to 20%; in exchange, the Vietnamese market will be fully open to the U.S.
As a result, all parties are optimistic about Vietnam’s economic outlook. According to Vietnamese media reports, VinaCapital, one of Vietnam’s largest investment management companies, pointed out that as long as the U.S. tariffs on Vietnamese goods are less than 10% higher than those on other countries in the region, Vietnam’s strengths in labor quality, cost, demographics, and geographic location will continue to be effective. “In the coming years, Vietnam will continue to be a destination attracting global manufacturers and foreign direct investment.”
VinaCapital also said that Vietnam’s economic growth this year will be mainly driven by internal factors, including increased investment in public infrastructure, a recovery in the real estate market, and major administrative reforms and initiatives by the government.
Data released by the National Bureau of Statistics of the Ministry of Finance of Vietnam on Saturday (July 5) showed that in the second quarter of this year, Vietnam's Gross Domestic Product (GDP) grew strongly by 7.96% year-on-year, the highest growth rate since 2022. This figure is also higher than the 7.05% recorded in the first quarter.
The Bureau stated in a declaration: “Against a backdrop of many uncertainties in the global and regional economy, Vietnam's socioeconomic performance in the second quarter and the first half of this year has achieved very positive results, coming close to the set targets.”
This undoubtedly is good news for the Vietnamese government. Vietnam’s economic performance for the full year is expected to reach at least the 8% growth target set by the government.
The data also showed that in the first half of this year, Vietnam attracted a total of $21.51 billion in foreign direct investment (FDI), an increase of 32.6% year-on-year, which is the highest level for the same period since 2009.
The Foreign Investment Agency of Vietnam indicated this fully reflects foreign investors’ confidence in Vietnam’s business environment. Many enterprises not only see Vietnam as a new destination for investment but are also willing to increase their investment in already successful projects.
However, authorities also noted that potential risks remain in the future, such as the U.S.-China trade conflict and new tax policies, which could affect capital flows.
Vietnamese Prime Minister Pham Minh Chinh previously stated that Vietnam’s economy still faces significant restrictions, difficulties, and challenges, and has therefore instructed all ministries and local governments to take strong measures to boost the economy and respond actively and flexibly to the U.S. reciprocal tariff policies.
In addition, Vietnam’s export performance has also been very strong. Data from the statistical bureau show that in the first half of this year, Vietnam’s total goods exports reached $219.83 billion, an increase of 14.4% year-on-year, with processed industrial goods accounting for nearly 90%. The United States remains Vietnam’s largest export market, with export value reaching $70.91 billion.
On Wednesday (2nd), the United States and Vietnam announced the conclusion of a trade agreement, whereby the U.S. will reduce reciprocal tariffs on Vietnamese products from the originally planned 46% to 20%; in exchange, the Vietnamese market will be fully open to the U.S.
As a result, all parties are optimistic about Vietnam’s economic outlook. According to Vietnamese media reports, VinaCapital, one of Vietnam’s largest investment management companies, pointed out that as long as the U.S. tariffs on Vietnamese goods are less than 10% higher than those on other countries in the region, Vietnam’s strengths in labor quality, cost, demographics, and geographic location will continue to be effective. “In the coming years, Vietnam will continue to be a destination attracting global manufacturers and foreign direct investment.”
VinaCapital also said that Vietnam’s economic growth this year will be mainly driven by internal factors, including increased investment in public infrastructure, a recovery in the real estate market, and major administrative reforms and initiatives by the government.