HANOI (Reuters) -The World Bank on Monday trimmed its forecast for Vietnam’s economic growth on evidence that U.S. tariffs were starting to have an impact on the Southeast Asian exporter’s shipments.

The World Bank cut its GDP forecast for Vietnam to 6.6% from 6.8% this year, saying activity is expected to moderate over the rest of the year as export growth normalises after a strong first-half performance.

The World Bank’s new forecast is significantly lower than the government’s official target of 8.3%-8.5% growth.

“As an export-oriented economy, Vietnam remains vulnerable to slower global growth and softening demand from major trading partners,” the World Bank said.

“Trade-policy uncertainty may also begin to weigh on business and consumer confidence.”

Vietnam’s biggest export marke

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