Vietnam’s annual growth reaches 8% as trade surplus with US hits record despite tariffs

Vietnam’s economy grew by 8% in 2025, accelerating from the previous year’s pace due to robust exports despite U.S. tariffs, preliminary government data showed on Monday, as the country posted its highest annual trade surplus with Washington.

The Southeast Asian nation, which is one of the top exporters to the United States, is still in talks with Washington over a possible trade deal but has largely shrugged off U.S. duties of 20% imposed on its goods by the Trump administration to cut Vietnam’s huge trade advantage.

Vietnam’s total exports rose by 17% to about $475 billion last year, the data showed, with shipments to the United States worth $153 billion, far outstripping 2024’s record figure of $119.5 billion.

That has led to an unprecedented trade surplus with Washington of nearly $134 billion last year, far higher than the previous peak reached in 2024, according to the Vietnamese figures, which are usually more conservative than U.S. data.

The latest trade figures available from the U.S. statistics agency show that Vietnam’s surplus with Washington had already hit an unprecedented $129.5 billion in September, higher than the $123.5 billion surplus recorded for all of 2024, which was a record.

Vietnam is a key link in global supply chains for electronics, textiles, shoes and other goods. 

Foreign multinationals, such as Samsung, Apple and Nike, assemble their products in Vietnam, often made of components and raw materials from China, before exporting them – mostly to the United States, which is Vietnam’s main market.

Vietnam’s imports of Chinese goods reached a record level last year of $186 billion, the data showed, from $144.2 billion in 2024.

The Trump administration has accused Vietnam of being a transshipment hub for Chinese goods exported to the United States. Illegally transshipped goods face U.S. tariffs of 40%, but the White House has not yet indicated its criteria to determine what can be considered as illegal transshipment.

ROARING GROWTH

Vietnam’s growth rate of 8.02% last year, from 7.09% in 2024, showed no immediate disruption from the U.S. tariffs that were imposed from August and from widespread damage from repeated floods last year.

Last year, the government had set an annual growth target of more than 8%.

In the fourth quarter, the economy grew 8.46% on the year, up from a revised 8.25% in the third quarter, to post the strongest quarterly growth rate of the year.

Despite the strength of recent years, growth did not meet the ambitious yearly average target of 6.5%-7% set by the ruling Communist Party for the 2021-2025 period, largely due to low growth in COVID-affected 2021. 

For the five-year period, average annual growth stood at 6.25%.

For the 2026-2030 period, the government is targeting annual growth of at least 10%, according to a preliminary document expected to be endorsed at the five-yearly party congress later this month. 

Last year’s growth was also backed by domestic consumption and higher government spending on infrastructure as the country tries to rebalance its growth model away from largely hinging on exports.

Industrial production and retail sales both rose by 9.2% in 2025, Monday’s data showed. Consumer prices in December rose 3.48% from a year earlier, and the inflation rate for 2025 was 3.31%.

Inflows of foreign investment in 2025 rose 9% to $27.6 billion, the data showed. Foreign investment pledges, which indicate the size of future inflows, were largely flat year-on-year at $38.4 billion.

By Khanh Vu & Francesco Guarascio – Reuters – January 5, 2026