HANOI: Vietnam's economy grew at a slightly slower pace in the first quarter, government figures showed on Sunday, as the Southeast Asian country braces for the impact of colossal tariffs imposed by Washington.
The manufacturing powerhouse counted the United States as its biggest export market in the first three months of the year, but the key customer has now slapped it with a thumping 46 per cent tariff.
The move is part of a furious new global trade blitz announced Wednesday by President Donald Trump that has sent markets around the world into a tailspin.
Gross domestic product in Vietnam during the first quarter grew 6.93 per cent year-on-year, down slightly from the 7.55 expansion in the final quarter of last year, the General Statistics Office said on Sunday.
Despite the challenge presented by US levies, Vietnamese Prime Minister Pham Minh Chinh said a target of "at least eight per cent" growth this year remains unchanged, the government's official news portal said.
To achieve its goal, Vietnam's Ministry of Finance has determined that in the remaining quarters the economy will need to grow between 8.2 and 8.4 per cent, the government said.
The US tariffs threaten to "significantly damage" Vietnam's current growth model, which relies heavily on exports to the United States, said Sayaka Shiba, senior country risk analyst at research firm BMI.
She added that in the worst-case scenario, Vietnam could suffer a three-percent hit to GDP this year. — AFP
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