Vietnam's Economic Winds Shift: Navigating Tariffs and Growth

Vietnam's economic growth has slowed in the first quarter due to U.S. tariffs, threatening its export-driven model. GDP increased by 6.93%, down from 7.55% previously. While the country aims for 8% growth, tariffs could lower GDP forecasts. Industrial production and exports show mixed results amid foreign investment concerns.

Vietnam's first-quarter economic growth has taken a hit, slowing to 6.93% as new U.S. tariffs threaten the export-dependent economy.

The National Statistics Office released data indicating a drop from the 7.55% growth rate recorded in the previous quarter. Industrial production also saw a deceleration, with growth at 7.8% compared to 11.5% in December.

Prime Minister Pham Minh Chinh maintained an optimistic target of 8% growth despite the challenges, though research firm BMI suggests the recent tariffs could cause GDP to fall short of the 7.4% forecast.

(With inputs from agencies.)