World Bank Downgrades Vietnam Growth Forecast to 6.6% Amid US Tariffs

The World Bank has lowered its forecast for Vietnam's economic growth in 2025 to 6.6%, down from 6.8%, citing the impact of U.S. tariffs on Vietnamese exports and a moderation in export growth after a strong first half. Despite this downgrade, Vietnam's economy is expected to remain resilient due to strong manufacturing activity and consumption supported by government investment, with growth projected to ease to 6.1% in 2026 before recovering to 6.5% in 2027. The Vietnamese government maintains an ambitious GDP growth target of 8.3%-8.5% for 2025, emphasizing fiscal expansion, export restructuring, and policies to enhance product quality and market diversification amid rising global trade tensions. Experts highlight that Vietnam's competitive manufacturing base, low public debt, and ongoing structural reforms in areas such as digital transformation and green growth underpin its economic prospects. However, risks remain from slower global growth, trade-policy uncertainty, and financial sector vulnerabilities, prompting calls for prudent risk management and continued focus on macroeconomic stability. Prime Minister Pham Minh Chinh stresses the importance of public investment, resolving project delays, and supporting domestic production to sustain growth momentum.