Vietnam’s Economy Defies U.S. Tariffs With An Outstanding Eight Point Two Three Percent Growth In The Third Quarter

Published on October 6, 2025

Despite the imposition of a 20% tariff on its exports to the U.S. since August, Vietnam’s economy has demonstrated remarkable resilience, achieving an impressive 8.23% growth in the third quarter. This strong performance can be attributed to a combination of factors, including a surge in foreign investments, a rebound in tourism, and strong domestic consumption. While exports to the U.S. have slowed, Vietnam has diversified its trade relationships, seeing significant growth in exports to other regions. Additionally, retail sales and consumer lending have bolstered the economy, allowing it to maintain robust growth despite external pressures.

Despite facing a 20% tariff on exports to the United States since August 7, Vietnam’s economy has shown remarkable resilience, defying predictions with a strong growth rate of 8.23% in the third quarter. This growth is largely attributed to an increase in foreign investments, a significant rebound in tourism, and robust domestic consumer activity. While exports to the U.S. have been affected by the tariff, the overall trade balance has remained positive, reflecting the broader strength of the Vietnamese economy. Additionally, Vietnam’s retail sales and consumer lending have played a pivotal role in driving economic expansion during this period.

The data released by the Vietnamese government reveals that, despite the ongoing tariff challenges, Vietnam’s GDP grew by 8.23% from July to September. This figure exceeded expectations, further solidifying the country’s position as one of the fastest-growing economies in Southeast Asia. The growth rate has also helped the country remain on track to meet its ambitious annual growth target, which ranges between 8.3% and 8.5%. The third-quarter results demonstrate the resilience and adaptability of Vietnam’s economic framework, even in the face of external economic pressures.

The U.S. tariff, which began on August 7, aimed to reduce imports of Vietnamese goods, particularly those in sectors such as footwear, textiles, and electronics. Despite this, Vietnam has managed to diversify its exports, leaning on other markets and industries to balance the decline in U.S. demand. While exports to the U.S. did decline during the third quarter, Vietnam has experienced a notable rise in exports to other regions, particularly in Asia and Europe. This has contributed to the overall 18.4% increase in exports year-on-year. The diversification of export destinations, including markets in the EU and ASEAN countries, has helped offset the loss of revenue from the U.S. market.

The effects of the tariff were particularly noticeable in the footwear and textile sectors, where shipments to the U.S. saw a significant reduction. However, the broader economic picture remains strong, thanks to the increasing demand for products from other sectors. The manufacturing sector, especially in electronics, machinery, and agricultural products, has benefited from this shift, further highlighting the diversification efforts that have helped sustain growth.

One of the key factors driving Vietnam’s economic resilience is its ability to attract foreign investments, particularly from multinational companies seeking to diversify their supply chains outside of China. The trade tensions between the U.S. and China have provided Vietnam with a unique opportunity to position itself as a more attractive destination for foreign direct investment (FDI). This shift has been evident in sectors like technology, manufacturing, and renewable energy, where foreign capital inflows have increased substantially.

In addition to foreign investments, the resurgence of tourism has played a crucial role in supporting the economy. As global travel restrictions eased, Vietnam saw an uptick in international arrivals, particularly from neighboring countries in Asia. The tourism industry has benefited from government initiatives aimed at boosting the country’s profile as a tourist destination, and the return of international visitors has provided a much-needed boost to the service sector, including hospitality and retail businesses. This increase in tourism has also positively impacted employment levels in cities that are popular tourist destinations.

The country’s domestic consumer market has also been a significant driver of economic growth. Retail sales have been particularly strong, as local consumers have been increasingly active in spending, especially in the wake of the pandemic. With rising incomes and a growing middle class, consumer demand has been resilient, contributing to the steady growth of various industries, from retail to automotive and consumer goods. The growing spending power of Vietnamese households is a key indicator of the underlying strength of the domestic economy, which continues to support the country’s growth despite external challenges.

In addition to retail sales, consumer lending has been another key factor in Vietnam’s economic expansion. The country has seen an increase in loans for homes, vehicles, and personal consumption, driven by relatively low interest rates and increased demand for credit. As the Vietnamese financial sector remains stable and well-capitalized, consumer lending has become a key support for economic growth, fueling demand across a range of sectors.

The stock market also responded positively to the third-quarter growth data, with shares rising by 2% following the announcement. This is seen as a sign of investor confidence in Vietnam’s economic outlook, despite the external pressures caused by the tariff and global uncertainties. The increase in stock prices indicates that investors remain optimistic about the country’s long-term prospects, driven by the strong performance in sectors like foreign investment, tourism, and consumer spending.

Despite the 20% U.S. tariff, Vietnam’s economy grew by 8.23% in the third quarter, driven by strong foreign investments, a recovery in tourism, and robust domestic consumption, alongside the diversification of export markets. These factors helped sustain growth despite external trade pressures.

despite facing significant external challenges, including the 20% U.S. tariff, Vietnam’s economy has displayed impressive resilience. The country has managed to maintain robust growth, with a strong GDP expansion of 8.23% in the third quarter. Factors such as foreign investment, a rebound in tourism, growing domestic consumption, and strong export performance to other regions have helped mitigate the effects of the tariff. Furthermore, the government’s efforts to diversify export markets and foster a stable economic environment have played a key role in maintaining the country’s economic stability. Looking ahead, Vietnam appears poised to continue its growth trajectory, with a diversified economy and a strong foundation in key sectors.