HANOI (Reuters) -Vietnam will officially revise up its gross domestic product growth target for 2025 to at least 8.0% from 6.5%-7.0%, driven by stronger industrial manufacturing, Minister of Planning and Investment Nguyen Chi Dung said on Wednesday.
The new target comes as Vietnam, an export-reliant economy, is confronting the risks from intensifying global trade disputes, including new duties on its steel exports to the United States.Imports and exports are both expected to grow 12% this year, Dung said in parliament, adding that the trade surplus is estimated at $30 billion.
Dung said Vietnam would face a mixture of opportunities and challenges this year, “but the challenges are more prominent, threatening to leave significant impacts on the economy.”
ANZ Research said in a note on Wednesday the mix of U.S. tariffs, weak demand in China and a strong U.S. economy was changing the export environment for Asian economies.
Vietnam’s trade surplus with the United States hit a record high of more than $123 billion last year, U.S. data showed.
“Vietnam stands out as the most exposed to higher across-the-board U.S. tariffs and being a priority target if the U.S. focuses on economies among the top contributors of the U.S. trade deficit,” ANZ Research said.
The Southeast Asian country grew 7.09% last year, making it one of the fastest-growing economies in Asia.
Dung said industrial manufacturing and foreign investment would lead this year’s economic growth, noting that the industrial production and construction sector is expected to grow 9.5%.
Foreign investment inflows are expected to be $28 billion, while domestic retail sales are expected to rise 12%, he said.
“We will also prioritise keeping inflation under control and ensuring macro stability,” Dung said.
He said inflation is expected to be 4.5%-5.0% this year.
The revised GDP growth target is subject to approval from the parliament, which began a week-long meeting on Wednesday.
(Reporting by Khanh Vu; Editing by John Mair)
