BANGKOK, Thailand –Vietnam’s economy grew by 7.52% in the first half of 2025, its fastest six-month expansion in over a decade, according to official figures released on Saturday (July 5). The surge was largely driven by soaring exports, underscoring the country’s growing role as a global manufacturing hub.
This robust growth comes just days after Hanoi avoided the harshest punitive tariffs imposed by former U.S. President Donald Trump on several countries’ exports, including Vietnam’s.
“GDP in the first six months of 2025 rose by 7.52% year-on-year — the highest for any first-half period between 2011 and 2025,” Vietnam’s General Statistics Office (GSO) stated.
In the second quarter alone, Vietnam’s GDP jumped 7.96% compared to the same period last year — the strongest Q2 growth since 2022, when it hit a record 8.56%.
The GSO praised the strong economic and social performance, calling it a major success “amid global and regional uncertainties.”
Dodging Tariffs, Boosting Trade
Vietnam’s export strength also coincides with a new trade agreement with Washington announced earlier this week, which reduced threatened tariffs from 46% to a minimum of 20%, in exchange for greater U.S. market access for American products.
Still, even the adjusted rates remain nearly five times higher than pre-Trump levels. According to Bloomberg Economics, the deal also contains provisions that increase uncertainty around Vietnam’s supply chain ties to China, a key source of its raw materials.
Trump’s policy includes a 40% tariff on goods routed through Vietnam if deemed an attempt to sidestep direct restrictions on Chinese imports — a tactic known as transshipment. Washington has long accused Hanoi of enabling Chinese goods to enter the U.S. via the back door, a charge Vietnam denies, though it acknowledges heavy reliance on Chinese components.
Exports Skyrocket
The U.S. remains Vietnam’s largest export market, with shipments totaling $70.91 billion in the first half of 2025. Vietnam’s total exports hit $219.83 billion, up 14.4% year-on-year, with nearly 90% of that value coming from processed industrial goods.
Fitch Solutions, in a forecast released Friday, noted upside risk to its existing GDP growth projection of 6.4% for 2025, citing strong momentum in exports and foreign investment.
Economic Overhaul and Middle-Income Ambitions
Vietnam’s government has set an ambitious 8% growth target for 2025 as it pushes toward middle-income status by 2030. The GSO noted that last month’s restructuring of provincial and municipal units is part of a wider effort to streamline governance and accelerate economic and social development.
Vietnam’s 2024 GDP growth stood at 7.1%, and with this year’s export-fueled momentum, analysts say the country is likely to exceed expectations — despite growing geopolitical and trade headwinds.
