Significant impact

Addressing a Government press briefing in Hanoi on April 6, Deputy Minister of Industry and Trade Truong Thanh Hoai stated that the US announcement to impose the 46% tariff on Vietnamese goods starting on April 9 will significantly impact Vietnam’s export activities and economic growth, as it directly affects processing and manufacturing, foreign direct investment attraction, domestic investment, and services. Several key export items such as computers, electronic components, textiles, and footwear are at risk of declining export turnover.

“When the US increases tariffs, the prices of Vietnamese export products in the US market will rise, which will affect their competitiveness compared to goods from other countries. In addition, American consumers’ purchasing power will decline, leading to a decrease in demand for Vietnamese goods,” Hoai analysed.

He also pointed out that for existing contracts, American companies themselves may reconsider whether to continue purchasing goods from Vietnam.

Synchronized measures in place

The Deputy Minister recalled that Party General Secretary To Lam had a phone call with US President Donald Trump on April 4 which was then described by Trump as productive. The Government has also proactively submitted reports and proposals to the Political Bureau, receiving the go-ahead.

The Ministry of Industry and Trade has implemented a range of measures in an effort to engage with various agencies of the US administration and to clarify Vietnam’s stance.

Both sides have expressed a desire to continue strengthening bilateral cooperation in line with the overall developments in the two countries. Vietnam is willing to discuss with the US the possibility of reducing import tariffs on US goods to 0%. This is an important step toward resolving the tariff issue with the US, said Hoai.

Looking ahead, the trade official said, the Ministry of Industry and Trade will continue working closely with relevant US agencies to address existing issues in the investment and trade relationship between the two countries.

Market diversification

As Vietnam’s exports will face many challenges in the near future, the Deputy Minister said, ministries and sectors must closely coordinate with businesses to effectively implement the proposed measures. These include fully leveraging free trade agreements; promoting diversification of export markets, such as the Middle East and Latin America; enhancing trade promotion; and improving logistics infrastructure to reduce transportation costs and increase the competitiveness of Vietnamese goods.

“We need to improve the capacity of domestic producers and exporters to ensure they can adapt to market changes and development trends. Stronger policies are needed for processing and manufacturing to enhance domestic value in industrial products and meet rules of origin requirements from partner countries,” said Hoai.

He also emphasized the need to protect the legitimate rights and interests of businesses, and to promptly resolve trade-related issues and disputes to minimize damage to Vietnamese enterprises.

“Despite facing many challenges, we must restructure the economy toward faster, more sustainable growth, enhance self-reliance, and promote market diversification,” he added.

For businesses, the Deputy Minister urged them to proactively update market information and closely monitor trade policies of other countries in order to timely adjust their business strategies.

Furthermore, he said, based on FTAs Vietnam has signed, businesses should diversify export markets, effectively tap into key, traditional, niche, and small markets. They must also comply with rules of origin in FTAs to avoid risks related to trade fraud and the use of materials from third-party countries.

Vietnam ready for tariff reduction negotiations with United States

VOV.VN - Vietnam is ready to negotiate towards reducing import tariffs on US goods to 0%, Deputy Prime Minister Bui Thanh Son told US Ambassador to Vietnam Marc Knapper during a meeting in Hanoi on April 6.