AmCham Vietnam encouraged by government response to US tariffs

AmCham Vietnam encouraged by government response to US tariffs

AmCham Vietnam has been encouraged by the quick and reasoned response of the Vietnamese government to the new US tariffs.

“We were pleased to learn of the constructive telephone exchange between General Secretary To Lam and President Trump on April 4^th,” Mark Gillin, chairman of AmCham Vietnam, told VIR on April 8.

“We highly appreciate the leadership and pragmatism displayed by General Secretary To Lam in squarely addressing one of the stated US concerns over what it has called “non-reciprocal” tariffs by offering reciprocal tariffs of zero per cent,” Gillin said.

“Businesses were hoping for a response that was quick, focused, and significant, and we believe the the Party general secretary’s offer achieved that. It is a first step. President Trump's response seems to indicate that constructive dialogue is possible and is the path with the best likely outcome,” he added.

Intel Vietnam plays a significant role in the group's global value chain, with an investment of $1.5 billion in Vietnam. Photo: Le Toan

Additionally, AmCham wished to highlight the opportunity such dialogue holds for US exporters, including those in agriculture, who have been pushing for a free trade agreement with Vietnam that would provide them with improved market access and lower tariff rates, particularly relative to Vietnam’s other trading partners.

Reducing tariffs was only one of the requests made by The Office of the United States Trade Representative (USTR). The other was to reduce non-tariff trade barriers.

The USTR issued the “National Trade Estimate Report on Foreign Trade Barriers” which commented on Vietnam’s status on a number of trade related issues. However, the report did not include requests for specific deliverables.

Additionally, it called on AmCham members in Vietnam, particularly those involved in importing from the US to Vietnam, to be more specific in recommending steps that could increase US imports to Vietnam.

Finally, AmCham emphasised the importance of delaying the onset of these tariffs.

“The US should allow time to discuss and consider offers that are in its interests. It is in the US interest to demonstrate that those willing to negotiate in good faith, rather than retaliate, will be engaged in kind,” he added.

There is no reason to cause significant harm to parties from both countries who have either entered into transactions or made significant investment in planning for near term transactions, when doing so does not further the administration's stated objectives in the short or long term.

VIR