REUTERS, Hanoi

The World Bank on Monday trimmed its forecast for Vietnam’s economic growth on evidence that US 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 percent from 6.8 percent 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 percent-8.5 percent 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 market, the United States, imposed a 20 percent tariff on its goods from August 7, with transshipments from third countries through Vietnam facing a levy of 40 percent.