Vietnam Economy Grows Faster in Q2 Due to Strong Exports and US Trade Deal

Vietnam's economy saw faster growth in the second quarter of this year, driven by strong exports. This positive development followed US President Donald Trump's announcement of lower tariffs on Vietnamese products. Concerns about Vietnam's economic outlook had been rising prior to the trade deal, especially since the US is a major export market for the country.

Government data revealed that the country's GDP growth in the April to June quarter reached 7.96 per cent year-on-year, up from 6.93 per cent in the first quarter, just shy of the full-year growth target of 8 per cent. The National Statistics Office (NSO) noted that economic performance in the first half of the year was positive despite global economic uncertainties.

Exports surged by 18.0 per cent to US$116.93 billion, while imports increased by 18.8 per cent to US$112.52 billion, resulting in a trade surplus of US$4.41 billion. Industrial production also grew by 10.3 per cent in the period, with consumer prices rising by 3.57 per cent in June.

Trump's trade deal with Vietnam included a 20 per cent tariff on Vietnamese goods, lower than the previously threatened 46 per cent rate. Additionally, trans-shipments through Vietnam from third countries would face a 40 per cent levy, while US products could be imported tariff-free.

According to the source: CNA.