Foreign tourists photograph the headquarters of HCM City People’s Committee. The city is assessing the impact of new US tariffs to safeguard its 2025 growth target of 8–8.5 per cent. — VNS Photo Bồ Xuân Hiệp

HCM CITY — HCM City is assessing the potential impact of new US tariffs on exports as Việt Nam’s economic powerhouse works to maintain its ambitious growth target of 8–8.5 per cent this year.

Speaking at a meeting on Friday to review the city’s socio-economic performance in the first half of 2025, Nguyễn Văn Được, chairman of the People’s Committee, warned that recent US trade measures could pose challenges to sustaining economic momentum in the second half.

He urged relevant agencies to evaluate the impact of the tariffs and whether current growth targets remain achievable.

Under a new deal announced on July 2, the US will impose a 20 per cent tariff on most Vietnamese exports, significantly lower than the 46 per cent initially proposed.

However, a 40 per cent tariff will apply to goods deemed to be transshipped from countries like China through Việt Nam.

In exchange, Việt Nam will cut all tariffs for US imports into the country, potentially opening opportunities in sectors like automotive, agriculture, and finance. 

While the agreement offers short-term relief, it also brings new regulatory and compliance pressures, especially for HCM City’s export-driven economy. 

The city must improve supply chain transparency, enforce customs rules, and streamline administrative processes to remain competitive.

The new tariffs have introduced uncertainty to HCM City’s economic outlook.

A slowdown in exports could affect industrial output, employment, and budget revenue, especially in major manufacturing hubs such as Tân Thuận, Linh Trung, and VSIP.

To mitigate these risks, city leaders are looking to boost domestic consumption, accelerate public investment, and expand service sectors like tourism and digital technology.

If effectively implemented, HCM City could emerge as a key export base for global companies looking to diversify beyond China, experts said. 

The meeting was the first since HCM City merged with former Bình Dương and Bà Rịa – Vũng Tàu provinces, creating a mega city covering nearly 6,800 square kilometres and home to 14 million people. 

At the meeting, officials reviewed early outcomes of the new two-tier governance model, identifying early challenges in public services and administration.

Được called for faster adoption of digital governance tools and a unified strategic plan that replaces the three former jurisdictions’ individual development blueprints. 

City officials have recently unveiled a long-term vision to 2060, aiming to make HCM City a top Southeast Asian mega city, integrating finance, high-tech industry, and the marine economy.

The ultimate goal, Được said, is to make HCM City one of the world’s top 100 most liveable cities.

In the first half of 2025, the city recorded GRDP growth of 7.82 per cent.

The former Bình Dương grew by 8.3 per cent, while Bà Rịa – Vũng Tàu saw 2.61 per cent growth. Overall, the new HCM City posted a combined growth of 6.56 per cent.

Retail and service revenue rose 16.2 per cent, while foreign direct investment across the three regions reached more than US$5.2 billion. 

Budget revenue stood at VNĐ415 trillion (60 per cent of the year’s target), and public investment disbursement reached VNĐ46.8 trillion (32.1 per cent of the plan).

Exports totalled $31.6 billion, up 13.3 per cent, and imports rose to $24.9 billion, up 13.2 per cent.

FDI into HCM City alone surged 123.1 per cent to nearly $2.7 billion.

Tourism also rebounded, with revenue hitting VNĐ117.9 trillion, up 27.3 per cent. 

The city welcomed more than 3.8 million international tourists and 18.3 million domestic visitors in the first six months. — VNS.