Vietnam Economic News Insight & Recap – May 2025 by Grant Thornton

Vietnam’s economic performance in May remained solid, even as the country continued grappling with external headwinds, particularly the U.S. tariff situation. Nevertheless, key indicators point to the underlying resilience of Vietnam’s economy. Total registered FDI rose 51% year-on-year, trade turnover increased by nearly 16%, and Vietnam maintained a healthy trade surplus of USD4.6 billion. The OECD’s updated forecast of 6.2% GDP growth for 2025, although below the government’s 8% target, positions Vietnam as one of the stronger-performing economies in the region. However, signs of strain remain. Specifically, new FDI projects are smaller in value, manufacturing activity is still subdued, and inflation risks remain on the radar. Vietnam’s current position is one of cautious stability, but staying on course will require active handling of external pressures.

In this context, Vietnam is working to strengthen its trade relationships and build strategic buffers, with the U.S. remaining a central focus. A high-level agricultural mission in May helped deepen commercial ties, backed by new cooperation agreements. At the same time, efforts to expand technology engagement and move up the value chain are gaining traction, with the most notable example being Qualcomm’s new AI R&D center. These initiatives reflect a dual objective: safeguarding market access while laying the groundwork for longer-term repositioning within global value chains. In the coming months, the government is likely to prioritize containing tariff impacts through negotiation and accelerating the shift toward a more resilient, value driven economy. The outlook will depend not only on external conditions but also on how effectively Vietnam turns current challenges into strategic advantages.

1. OECD released its forecast for Vietnam’s economic growth in 2025
2. Total FDI rises sharply, but new project capital still falls
3. Vietnam maintains trade surplus amid challenging conditions
4. Vietnam manufacturing conditions improved slightly in may
5. Vietnam and U.S. strive to deepen agricultural ties
6. Vietnam–EAEU FTA marks 10 years with growing trade
7. Qualcomm expands footprint in Vietnam with new AI R&D center

> Download Full PDF at: Vietnam Economic News Insight & Recap – May 2025

Thanks @Source from Grant Thornton Vietnam