Vietnam Led Asia Growth in Q3
By Reuters | 05 Oct, 2025

Vietnam remained Asia's fastest-growing economy despite headwinds from 20% US tariffs that kicked in mid-quarter.

Women work at a yarn weaving plant of the Nam Dinh textile and garment corporation in Nam Dinh city, south of Hanoi July 14, 2016. REUTERS/Kham

Vietnam's government said on Sunday its economy grew at an annual rate of 8.22% in the third quarter, when a 20% tariff on U.S. imports of its products took effect, accelerating from growth of 7.96% in the second quarter.

"It is the highest quarterly growth since 2011, excluding the surge in 2022 due to recovery post COVID-19 pandemic," Finance Minister Nguyen Van Thang said in a government statement.

Vietnam's total trade turnover, which includes imports and exports, surpassed $680 billion in the first nine months of this year, up 17% from a year earlier. The country posted a trade surplus of $16.8 billion during the same period, the government said. 

Sunday's economic release did not include comprehensive trade data, a key variable as a 20% U.S. import tariff on most Vietnamese goods imposed by the Trump administration took effect on August 7, midway through the quarter. 

The National Statistics Office is expected to release a full set of economic data, including detailed trade figures, on Monday.

Prime Minister Pham Minh Chinh said last month Vietnam expected exports to grow more than 12% this year. But a United Nations Development Programme report said U.S. duties risked slashing by up to one-fifth of Vietnam's exports to the United States, making it the hardest-hit country in Southeast Asia.

Vietnam would continue trade negotiations with the United States, the government and its trade ministry have said.

The third quarter was also marked by severe weather disruptions, with eight storms hitting the country, including Typhoon Bualoi, which caused an estimated 16.5 trillion dong ($625.5 million) in damage. 

Over the first nine months of the year, GDP grew 7.84% compared to the same period in 2024, according to the government. 

Vietnam is targeting gross domestic product growth of 8.3% to 8.5% this year. That is faster than last year's 7.09% growth, and higher than the World Bank's forecast of 6.6% and the International Monetary Fund's estimate of 6.5% growth.

The country's 2025 growth faces headwinds from external economic pressures and slow-moving reforms, the government statement said. It also warned of escalating natural disasters that are expected to worsen in the final months of the year. 

Consumer prices rose 3.27% year-on-year in the January–September period, with September inflation at 3.38%, it said.

($1 = 26,380 dong)

(Reporting by Phuong Nguyen; Editing by Jamie Freed and Lincoln Feast)