Singapore-based United Overseas Bank (UOB) has lowered its forecast for Vietnam’s GDP growth in 2025 to 6% from its previous 7% projection due to the significant downside risks of tariff measures imposed by the US, according to the bank’s latest report.

Under its current scenario, the bank projected that Vietnam’s exports to the US will decline 20% in 2025 while exports to other markets will remain the same as last year, resulting in a year-on-year drop of 6% in total export revenue this year.

UOB also forecast Vietnam’s GDP growth in the second and third quarter of this year at 6.1% and 5.8%, respectively.

Vietnam's real GDP growth in the first quarter of the year stood at 6.93% year-on- year, lower than the bank’s forecast of 7.1%. The slower pace is blamed for festive season of the Lunar New Year holiday, which resulted in moderate operation of factories.