Prime Minister Pham Minh Chinh said on Tuesday that Vietnam plans to negotiate fresh trade agreements during the year, aiming to reduce the impact of U.S. tariffs on its exports to the American market, the country’s largest trading partner.
The statement came days after estimates by the United Nations Development Programme showed U.S. duties risked slashing by up to one-fifth of Vietnam’s exports to the United States, making it the hardest-hit country in Southeast Asia.
Exports “will face difficulties and challenges … due to strategic competition, conflicts and the U.S.’s ‘reciprocal’ tariff policies,” Prime Minister Chinh said in a statement posted on the government’s website on Wednesday.
He expected exports to grow more than 12% this year. Vietnam’s exports in the year to September 15 rose 15.8% from a year earlier to $325.3 billion, according to government data.
Free Trade Agreements
To offset the impact of the U.S. duties, Vietnam aims to sign free trade agreements with Latin America’s Mercosur trading bloc and Gulf Cooperation Council countries by the end of the year, Chinh said.
He also reiterated that Vietnam would continue trade negotiations with the United States, after the Trump administration imposed a 20% tariff on most Vietnamese goods shipped to the country.
Vietnam is also working to address U.S. concerns by cracking down on products that violate international copyright or have questionable origins.
Chinh also told officials to continue cracking down on imported goods that may violate international copyright and that may have issues with their origin, according to the statement.
Both issues have been repeatedly raised by U.S. officials as major concerns in their relations with Vietnam.
The White House has also imposed a 40% tariff on goods deemed to be transshipped through Vietnam. That could have a huge impact if Washington decides to set strict limits on foreign components used in exported items, given Vietnam’s goods rely heavily on Chinese components.
(With inputs from Reuters)
