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1 week ago
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Source: AFP
Vietnam's economy grew astatine a somewhat slower gait successful the archetypal quarter, authorities figures showed Sunday, arsenic the Southeast Asian state braces for the interaction of colossal tariffs imposed by Washington.
The manufacturing powerhouse counted the United States arsenic its biggest export marketplace successful the archetypal 3 months of the year, but the cardinal lawsuit has present slapped it with a thumping 46 percent tariff.
The determination is portion of a furious caller planetary commercialized blitz announced Wednesday by President Donald Trump that has sent markets astir the satellite into a tailspin.
Gross home merchandise successful Vietnam during the archetypal 4th grew 6.93 percent year-on-year, down somewhat from the 7.55 enlargement successful the last 4th of past year, the General Statistics Office said Sunday.
Despite the situation presented by US levies, Vietnamese Prime Minister Pham Minh Chinh said a people of "at slightest 8 percent" maturation this twelvemonth remains unchanged, the government's authoritative quality portal said.
To execute its goal, Vietnam's Ministry of Finance has determined that successful the remaining quarters the system volition request to turn betwixt 8.2 and 8.4 percent, the authorities said.
The US tariffs endanger to "significantly damage" Vietnam's existent maturation model, which relies heavy connected exports to the United States, said Sayaka Shiba, elder state hazard expert astatine probe steadfast BMI.
She added that successful the worst-case scenario, Vietnam could endure a three-percent deed to GDP this year.
Manufacturing hub
Trump has claimed the Communist state charges the United States a 90 percent tariff, a fig based connected Vietnam's commercialized surplus with the United States, worthy $123.5 cardinal past year.
Experts judge the caller tariffs volition deed hardest successful sectors specified arsenic seafood, garments, footwear, wood, electronics and smartphones.
Major US corporations with manufacturing operations successful Vietnam, including Nike and Adidas, are apt to spot bid decreases and reductions successful revenue, perchance starring to mill downsizing and occupation losses, Pham Van Dai, a lecturer successful economics astatine Fulbright University Vietnam, told AFP.
The country's exports roseate 10.6 percent year-on-year successful the archetypal quarter, authoritative information showed, expanding importantly from 7.9 percent maturation successful the last 4th of 2024.
Meanwhile, concern accumulation was up 7.8 percent year-on-year, slowing from an 11.5 percent enlargement successful the erstwhile quarter.
Experts judge investors are inactive holding a "wait and see" mentality amid the uncertainty caused by Trump's tariffs.
"Now is the worst clip for investors to marque semipermanent decisions," said Dai, adding that they are waiting for "clearer policies from the United States and (other) countries' responses".
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Source: AFP
