Vietnam’s gross domestic product (GDP) growth is forecast to moderate to 5.8% in 2025 due to increased trade policy uncertainty, according to the World Bank (WB)'s latest East Asia and Pacific Economic Update.

President Donald Trump asserted on Thursday that trade talks between the U.S. and China are underway, pushing back against Chinese claims that no discussions have taken place to ease the ongoing trade war.

China on Thursday denied any suggestion that it was in active negotiations with the administration of U.S. President Donald Trump over tariffs, saying that any notion of progress in the matter was as groundless as “trying to catch the wind.”

President Donald Trump said Wednesday that he could re-impose “reciprocal” tariffs on some countries in as soon as two or three weeks, a potentially significant re-escalation of the global trade war that has already raised fears of a US and global recession.

China appears to have quietly rolled back retaliatory tariffs of 125% on some semiconductors made in the US, according to details provided to CNN on Friday by three import agencies in the southern technology hub of Shenzhen.

China’s government is considering suspending its 125% tariff on some US imports, people familiar with the matter said, as the economic costs of the tit-for-tat trade war weigh heavily on certain industries.

US Trade Representative Jamieson L. Greer and Vietnamese Minister of Industry and Trade (MOIT) Nguyen Hong Dien agreed on the importance of making swift progress towards reciprocal and balanced trade between the US and Vietnam.

Vietnamese ministries and sectors stand ready to address the US’s concerns and work together to find mutually beneficial solutions based on the principle of harmonised interests and shared risks, said Minister of Industry and Trade Nguyen Hong Dien.

Speaking at the forum, Czech Minister of Finance Zbyněk Stanjura highlighted Việt Nam as their most important trade partner in the ASEAN region, with bilateral trade exceeding US$4 billion in 2024.

Asean has reiterated its commitment to multilateral trade principles and does not plan to retaliate against US tariff actions.