World Bank Cuts Vietnam’s 2025 Growth Forecast Amid Tariff Pressures

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The World Bank on Monday trimmed its 2025 growth forecast for Vietnam to 6.6% from 6.8% in March and well below the government’s 8.3%-8.5% target, citing moderating activity as export growth normalizes after a strong first half. “As an export-oriented economy, Vietnam remains vulnerable to slower global growth and softening demand from major trading partners,” it said, adding that “trade-policy uncertainty may also begin to weigh on business and consumer confidence.” The downgrade comes after the U.S., Vietnam’s largest export market, imposed a 20% tariff on its goods from August 7, with third-country transshipments facing a 40% levy. Over the medium term, growth is projected at 6.1% in 2026 before rebounding to 6.5% in 2027, supported by recovering global trade and Vietnam’s manufacturing competitiveness. Meantime, Prime Minister Pham Minh Chinh has warned that trade tensions, geopolitical conflicts, and supply chain disruptions are adding pressure on inflation and the exchange rate.

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