KUALA LUMPUR - Vietnam confirmed that its economy grew by 8% in 2025, supported by stronger services, construction, exports, and the movement of workers, even as new US tariffs came into force, last Monday.

Vietnam remains one of Asia’s economic success stories, managing to expand despite higher trade levies imposed by the United States, its biggest export market.

Vietnam’s GDP is expected to expand in 2025 compared to the previous year.

“GDP in 2025 is projected to grow significantly at an estimated rate of 8.02 percent compared to the previous year,” the General Statistics Office (GSO) said in a statement.

Exports rose 17% year on year to about USD475 billion, while imports increased 19% to USD455 billion, with China remaining Vietnam’s largest source of imports, the GSO said.

In July, Vietnam secured a reduced minimum tariff rate of 20% from the US, down from over 40%, after agreeing to open its market to American products such as cars.

A partner at Mekong Capital, Chad Ovel said Vietnam has remained resilient despite US tariffs, supported by domestic consumption, investment, government spending, and changes in its workforce.

“Despite potential downside risks from tariffs imposed by the US, Vietnam has shown resilience through strong domestic consumption, business investment growth, government spending, and the shifting patterns of its workforce,” Ovel said. 

Analysts said Vietnam’s growth was also supported by cross-border labour movement, as foreign investment from countries including Korea, China, Japan, and the US increased demand for skilled workers who relocated temporarily to support production and efficiency.

At the same time, Vietnamese workers continued to take jobs abroad, mainly in East Asia and the Middle East, with remittances helping to boost household incomes and domestic spending in sectors such as services and construction.

“Its 2025 growth reflects the continued strong fundamentals of the Vietnamese economy and the government’s pro-private sector direction,” Ovel told AFP on Monday.

The economy grew slightly above 5% in 2023 and exceeded 7% in 2024, showing steady progress driven by trade, investment, and labour mobility.