The Vietnamese government will aim to raise its gross domestic product by 8.3% to 8.5% for this year, Prime Minister Pham Minh Chinh said on Wednesday, despite challenges. The target, which compares with growth of 7.

The recent tariff agreement has calmed bilateral tensions between Hanoi and Washington, but new trade tensions could be in store.

The US trade agreement with Vietnam reportedly lowers tariffs but lacks detail, triggering sharp warnings from Chinese officials.

At the heart of Trump’s latest trade deal with Vietnam and talks with other trading partners is an effort to counter what he sees as China’s unfair practices to circumvent U.S. tariffs.

Vietnam and Pakistan reaffirmed their commitment to advancing new initiatives and deepening practical, sustainable trade relations at the fifth meeting of the Vietnam-Pakistan Joint Subcommittee on Trade in Hanoi on July 11.

Vietnam is moving swiftly to diversify its export markets and reduce economic dependence on the US after the US-Vietnam trade agreement announced on July 4, 2025, imposed steep new tariffs.

Now, a fresh trade deal between the U.S. and Vietnam has eased some of those concerns. The agreement sets tariffs at 20%, far lower than the 46% rate floated in April. That news sent retail stocks climbing.

Vietnam is preparing stricter penalties to crack down on trade fraud and the illegal transshipment of goods, and has focused its inspections on Chinese products as it tries to comply with commitments made to Washington,