VNExpress-Apr 6
The U.S. is Vietnam’s largest export market but not the only one, Prime Minister Pham Minh Chinh has said, urging businesses to seek potential buyers in other countries. Speaking at a government meeting Sunday about the import tariffs U.S. President Donald trump is set to slap on Vietnam and all trading partners, he called for diversifying export markets. “Export markets need to be restructured, and the quality of goods must be enhanced to penetrate other potential markets such as the Middle East, Eastern Europe, Central Asia, Latin America, India, and ASEAN.” This is also an opportunity to restructure the economy into a more sustainable one by relying on science and technology and innovation, he said. Vietnam is set to face among the highest tariff rates, of 46%, which are set to come into effect April 9. Minister of Finance Nguyen Van Thang warned of significant economic challenges ahead as growth drivers are under strain, and macroeconomic stability faces growing risks. The 46% tariffs could have a broad impact on the economy as declining exports to the U.S would hurt manufacturing, foreign direct investment, private investment, domestic consumption, and employment, he said. “This is immense pressure to achieve the government’s growth target.” Vietnam aims for at least 8% growth in 2025, a target the government has refused to adjust despite tariff and trade competition pressures. The Ministry of Finance estimates GDP growth must be 8.3% in the last nine months to achieve the goal after the economy expanded by 6.9% in the first quarter. It urged stronger bilateral talks with the U.S. to negotiate a fair tariff rate that factors in mutual interests. It also called for boosting public investment, foreign direct investment and growing the domestic market. Domestically, measures include exploring import tax cuts, boosting purchases, and easing conditions for foreign firms, including American ones, with legitimate U.S. demands will address based on “harmonized benefits and shared risks.” After the U.S. unveiled its tariff policy, the cabinet met on April 3 to brief the Politburo and devise responses, prioritizing U.S. talks to delay tariffs until detailed negotiations can be held. On April 5 the cabinet met to act on the Politburo’s decisions and the call between General Secretary To Lam and Trump. Vietnam’s 6.93% growth in the first quarter, a five-year high, was a “positive signal”, though there are persistent challenges like exchange rate and interest rate pressures, slow recovery of demand, land and real estate policy gaps, and tardy public spending. Read more at:
