Trade Tariffs Threaten Vietnam's Economic Growth

Vietnam's economic growth slowed in the first quarter of the year due to new U.S. trade tariffs, impacting its export-reliant economy. The country's GDP rose by 6.93%, down from 7.55% in the previous quarter. Key sectors like garment and electronics face potential setbacks from reduced exports to the U.S.

Vietnam's economy has shown signs of slowing in early 2023 as challenges loom due to significant U.S. trade tariffs, with GDP rising by 6.93% in the first quarter compared to 7.55% in the last quarter of the previous year, according to a report from the National Statistics Office.

The Southeast Asian nation, heavily reliant on exports and foreign investment, could see its economic model strained following President Donald Trump's imposition of a 46% tariff on its goods. Despite pressures, Prime Minister Pham Minh Chinh maintains a growth target of at least 8% for the year.

Industries such as garments, electronics, and footwear are potentially vulnerable, with a forecasted drop in GDP if exports to the U.S. face a significant decline. The impact of these tariffs could result in decreased foreign investment and job creation, crucial for Vietnam's economic stability.

(With inputs from agencies.)