World Bank Slashes Vietnam’s Growth Outlook Amid Tariff Woes

 Vietnam’s economic momentum is slowing, with the World Bank cutting its 2025 growth forecast to 6.6 percent, citing U.S. tariffs as a growing threat. The revised projection, down from 6.8 percent, signals challenges for the export-driven nation.

The World Bank’s report, covered by Reuters, attributes the downgrade to a 20 percent U.S. tariff on Vietnamese goods, effective August 7, with transshipments facing a 40 percent levy. This has led to a 3.6 percent drop in export values in August, per Oxford Economics, despite a 14.5 percent yearly rise. Vietnam’s government, targeting 8.3 to 8.5 percent growth, now faces pressure as global trade tensions mount. Prime Minister Pham Minh Chinh warned of inflation and exchange rate risks, urging resilience in manufacturing.

The forecast has sparked concern, with some analysts optimistic about electronics exports, others wary of declining global demand. For Nigeria, reliant on oil exports, Vietnam’s challenges highlight the risks of trade disruptions. The downgrade tests Vietnam’s economic agility. As tariffs bite, the nation’s ability to pivot could influence Nigeria’s own export strategies.