The United Nations Development Programme (UNDP) has warned that Vietnam could be the worst-hit Southeast Asian nation from the new US tariffs imposed in August. With Vietnam exporting $136.5 billion worth of goods to the US last year—mostly from multinational companies’ factories—the 20% duties could slash exports by over $25 billion, nearly one-fifth of its total annual shipments.

UNDP Chief Economist Philip Schellekens noted that in a worst-case scenario, tariff-driven inflation in the US could deepen the decline, posing a significant risk to Vietnam’s trade-dependent economy.

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