(Jan 5): Vietnam’s economy grew faster than expected last quarter as manufacturing, investment and trade gained momentum despite President Donald Trump’s tariffs.
Gross domestic product expanded 8.46% in the October-December period from a year earlier, according to data from the National Statistics Office in Hanoi on Monday. That beat all estimates in a Bloomberg survey, with a median of 7.7%.
That was the fastest pace for the fourth quarter since 2011, the statistics office said in a statement. Growth for the full year came in at 8.02%, missing the government’s 8.3% to 8.5% goal for 2025.
Vietnam maintained its status as one of the world’s fastest-growing economies as aggressive lending, supportive state policies and a weaker dong — as well as surging tourism — helped it navigate the imposition of a 20% US tariff.
Vietnam has emerged across both Trump terms as an export powerhouse, and target of his accusations of trade partners ripping off the US. Its manufacturing and shipments to the US surged after Trump started targeting Chinese suppliers with trade restrictions and firms moved to Vietnam to avoid tariffs.
See also: Thai central bank stresses policy must take medium-term view
Exports last month jumped almost 24% from a year ago. Meanwhile manufacturing, which grew more than 10% in the fourth quarter, was the key driver of economic growth, according to the statistics office.
Vietnam’s push for growth carries some dangers, however.
Banks have been facing liquidity shortages after lending rose 17.9% last year, outpacing deposit growth of 14%, the central bank said last week. The regulator has taken steps, including dollar-swap transactions, to increase cash availability for lenders.
See also: Merz says parts of German economy in ‘very critical’ condition
In November, Fitch Ratings warned that Vietnamese banks’ rapid pace of lending is fuelling risks, noting that loan growth has for years outpaced economic growth.
Uploaded by Magessan Varatharaja
