Core Viewpoint - Vietnam's economy has shown strong growth in the first half of 2025, with a GDP growth rate of 7.52%, the highest for the same period since 2011, driven largely by exports and trade agreements with the US [1][5][9]. Economic Performance - Vietnam's GDP growth in Q2 2025 reached 7.96%, contributing to a first-half growth rate of 7.52%, marking a 14-year high [5]. - The total export volume in the first half of the year increased by 14.4%, with the top three export categories being computers and electronics, mobile phones, and machinery, accounting for 46% of total exports. Notably, the growth in computers and electronics surged by 42% [5][6]. Trade Dynamics - The US remains Vietnam's largest export market, with exports totaling $70.91 billion in the first half of the year, while China is the largest source of imports at $84.7 billion [6]. - The recent trade agreement with the US has led to a temporary reduction in tariffs, allowing Vietnamese goods to be exported at a lower rate, which has stimulated export growth [2][13]. Sectoral Disparities - Despite overall economic growth, not all sectors are performing equally. Industries such as textiles, leather, and wood processing are experiencing a slowdown in order growth [7]. - Domestic consumption in Vietnam is recovering but remains cautious, indicating potential challenges for sustained economic momentum [7]. Future Outlook - The Vietnamese government has set an ambitious target of 8% economic growth for the year, but achieving this may be challenging given the current growth rate and external economic uncertainties [9]. - The OECD has projected a GDP growth of 6.2% for 2025, with a further decline to 6% in 2026, although it acknowledges a positive long-term outlook for Vietnam compared to other Southeast Asian nations [9]. Export Strategies - Vietnamese companies are under pressure to fulfill export orders before the implementation of higher tariffs, leading to increased production and delivery efforts [11][12]. - To ensure sustainable growth, businesses are encouraged to diversify their markets and strengthen ties with countries that have free trade agreements, targeting emerging markets in the Middle East, Northeast Asia, and Africa [14][15]. Investment Factors - Key internal factors contributing to Vietnam's economic growth include increased public infrastructure investment, a recovering real estate market, and significant administrative reforms by the government [16].

Economic Growth - Vietnam's GDP growth rate for the first half of the year reached 7.52%, the highest level for the same period since 2011 [1][3] - The OECD predicts Vietnam's GDP growth will slow to 6.2% this year and 6% next year due to global policy uncertainties [4] Export Performance - Vietnam's total export value increased by 14.4% year-on-year in the first half of the year, with the most significant growth in computers and electronic products, which saw a 42% increase [3][5] - The United States remains Vietnam's largest export market, with an export value of $70.91 billion in the first half of the year [3] Trade Agreements and Tariffs - A trade agreement between the U.S. and Vietnam was announced, imposing at least a 20% tariff on all Vietnamese exports to the U.S., while a temporary "equal tariff" period allows for a 10% baseline tariff [1][5] - Vietnamese companies are rushing to fulfill orders before the higher tariffs take effect, indicating a heightened urgency in the manufacturing sector [5] Industry Challenges - Despite strong overall economic growth, certain sectors like textiles, leather, and wood processing are facing challenges with order growth [3] - Domestic consumption in Vietnam shows signs of recovery, but cautious sentiment persists among consumers [3] Investment Factors - Factors contributing to Vietnam's economic growth include increased public infrastructure investment, a recovering real estate market, and significant administrative reforms by the government [6]