HANOI: Vietnam’s economy grew at a faster pace in the second quarter of this year led by strong exports, in an encouraging sign just days after US President Donald Trump said he would place lower-than-threatened 20 per cent tariffs on many Vietnamese products.
Concerns over the Southeast Asian manufacturing hub’s outlook had been growing in the run up to the trade deal announced on Wednesday (Jul 2), particularly as the United States is Vietnam’s biggest export market.
Gross domestic product growth in the April to June quarter accelerated to 7.96 per cent year-on-year, from the 6.93 per cent in the first quarter, government data showed on Saturday.
It was just short of Hanoi’s full-year growth target of at least 8 per cent.
“Economic performance in the first half of this year was positive and close to our target amid global and regional economic uncertainties,” the National Statistics Office (NSO) said.
Exports were a bright spot in the last quarter, rising 18.0 per cent to US$116.93 billion from a year earlier, while imports were up 18.8 per cent at US$112.52 billion, translating into a trade surplus of US$4.41 billion, the NSO data showed.
Industrial production in the period rose 10.3 per cent, while June consumer prices rose 3.57 per cent.
Trump announced on Wednesday the United States and Vietnam reached a trade deal, under which Vietnamese goods would face a 20 per cent tariff, with trans-shipments from third countries through Vietnam also facing a 40 per cent levy. Vietnam could import US products with a zero percent tariff.
The tariff rates were lower than an initial 46 per cent rate threatened by Trump in April.
