Vietnam urges US to delay tariff decision

Vietnam urges US to delay tariff decision

In response to the United States’ decision to impose a 46 per cent tariff on Vietnamese exports, the Ministry of Industry and Trade (MoIT) has urged Washington to delay the enforcement of the measure in the hope of finding a mutually beneficial solution through constructive dialogue.

Ta Hoang Linh, (standing) director general of MoIT’s Foreign Market Development Department at the MoIT press conference on April 4

The call was made by Minister of Industry and Trade, Nguyen Hong Dien, through an official diplomatic note sent on April 3, shortly after the US administration announced the new tariff measures, which are scheduled to take effect on April 9.

At a press conference held on April 4, Ta Hoang Linh, director general of the MoIT’s Foreign Market Development Department, reaffirmed the ministry’s regret over the US decision, stressing that the two economies are fundamentally complementary in nature.

"Vietnamese products exported to the US primarily compete with goods from third countries, rather than with American producers. These exports also provide US consumers with more affordable options," said Linh.

According to MoIT, the Vietnamese government has made considerable efforts to support US businesses operating in Vietnam. These include resolving regulatory challenges, facilitating market access, and reducing the Most Favoured Nation (MFN) import tariff. Under a recent decree, 13 product groups from the US now benefit from reduced MFN rates, contributing to a current average import tariff of 9.4 per cent.

In addition, multiple US-invested projects in Vietnam have received attention from relevant authorities, with support provided to address operational difficulties and facilitate smoother project implementation.

Despite these measures, the US has justified the imposition of tariffs as part of broader efforts to address global trade imbalances, bolster domestic manufacturing, and strengthen economic security. According to a statement from the White House, the tariffs will remain in place until it determines that trade deficits and unfair practices have been adequately addressed.

Minister Dien’s diplomatic outreach to Washington includes an upcoming phone call with his US counterpart, as well as technical-level discussions with representatives of the United States Trade Representative.

"While the tariff measure poses significant concerns, both sides still have the opportunity to engage in negotiations and reach a solution that safeguards the interests of all parties involved," Linh said.

Vietnam has set an ambitious export growth target of 12 per cent for 2025, equivalent to approximately $450 billion in total export turnover. This objective is underpinned by the country’s extensive network of 17 free trade agreements (FTAs) covering over 60 economies and more than 70 bilateral cooperation frameworks.

However, the MoIT acknowledged that if a solution with the US cannot be reached, the new tariff measure could negatively impact this objective. Nevertheless, the ministry confirmed that such a scenario had been anticipated, and corresponding policy responses are already in place, including a detailed action plan and guidance for domestic enterprises.

The ministry underscored the importance of accelerating export market diversification to reduce overreliance on the US market, which currently accounts for 30 per cent of Vietnam’s total export value – despite representing only 13 per cent of global import demand.

"Vietnam still has vast potential to tap into the remaining 87 per cent of the global market," read a statement from the MoIT, adding that efforts will continue to expand trade relations with emerging economies in the Middle East, Latin America, Central Asia, and other dynamic markets.

To support this strategy, Vietnam will push forward with FTA negotiations, enhance trade promotion activities, and improve logistics infrastructure to reduce costs and increase competitiveness. The country will also expand its network of overseas trade offices to provide stronger support for Vietnamese exporters.

In parallel, the MoIT advised local businesses to improve product quality, adhere to technical and environmental standards, ensure traceability and compliance with rules of origin, and prevent trade circumvention and origin fraud.

The MoIT has also called for strengthening the national trade defence capacity. Businesses are encouraged to enhance their understanding of foreign trade remedy measures and proactively participate in training and information-sharing activities.

In the longer term, Vietnam aims to build a more resilient and innovation-driven export economy by restructuring its industrial base and fostering technological advancement. "A sustainable export model must be grounded not only in manufacturing, but also in science, innovation, and supply chain diversification," according to the MoIT.

By implementing a comprehensive set of policy responses and industry-specific solutions, the ministry is confident that Vietnam can weather trade uncertainties and maintain its export momentum in 2025 and beyond.

VIR