Vietnam’s Economic Resilience and Market Upgrade Amid US Tariffs

Vietnam's economy defied expectations with an 8.23% growth surge in Q3 2025, marking its strongest quarterly performance in three years. This acceleration comes despite the imposition of sweeping 46% US tariffs earlier in the year, a move championed by former President Donald TRUMP as corrective measures against perceived trade imbalances.

The VN Index reached record highs following FTSE Russell's landmark reclassification of Vietnam from frontier to emerging market status. This pivotal shift reflects years of structural reforms under Communist Party leadership, particularly under General Secretary To Lam who succeeded the late Nguyen Phu Trong. Market upgrades typically trigger significant capital inflows as institutional investors adjust portfolio allocations.

Lam's administration has aggressively streamlined government operations, merging ministries, reducing bureaucratic bloat, and restructuring local governance. These measures appear to have bolstered international confidence in Vietnam's economic stability, though details of any potential compromise with US trade authorities remain undisclosed.