Gross domestic product rose 6.71 per cent year on year in the second quarter of 2019, only slightly down from a revised 6.82 per cent in the first quarter, according to Vietnam's General Statistics Office. A poll of economists by Bloomberg had forecast a drop to 6.61 per cent growth.

The GSO said processing and manufacturing, which covers goods exporters, was the fastest growing sector, posting a 9.14 per cent rise. Services output rose 6.85 per cent, against 2.19 per cent for agriculture.

Vietnam has been one of the biggest beneficiaries in Asia from the ongoing trade war between the world's two largest economies, as manufacturers have moved production from China to the Southeast Asian country to avoid tariffs imposed by President Donald Trump.

Imports from Vietnam to the US surged nearly 40 per cent year on year in the first four months of 2019, according to Financial Times calculations, while imports from China over the same period fell 13 per cent.

The Asian Development Bank has estimated that Vietnam will gain up to a cumulative 2 per cent of GDP over three years if trade ructions escalate further.

Vietnam's gains stand in contrast to other Asean countries which have been hit hard by the knock-on effects of the ongoing dispute, with Singapore and Malaysia suffering particularly steep falls in exports. Data released last week showed Singapore's non-oil exports falling by the most in three years.

By Siddarth Shrikanth - The Financial Times - June 28,2019