Vietnamese and US goods not compete but complement each other

Vietnamese and US goods not compete but complement each other

Deputy Prime Minister Ho Duc Phoc and leaders of ministries and agencies met with associations and businesses on April 4 to discuss a response to the US reciprocal tariff of 46 per cent.

DPM Ho Duc Phoc chairing the meeting. Photo: VGP

DPM Phoc said that goods from Vietnam and the US do not compete; they complement each other. People from both countries enjoy the benefits of bilateral trade.

"The US economy is 60 times larger than Vietnam’s economy. Obviously, it is impossible to ensure balance, but it must be reasonable," he emphasised. "The higher tariffs will affect businesses and Vietnam’s economy, and also US consumption when Americans have to pay higher prices."

Nguyen Hoai Nam from the Vietnam Association of Seafood Exporters and Producers said that about $1.8 billion of seafood was exported to the US last year, making the US the biggest market for Vietnam's seafood industry. "Currently, 40,000 tonnes of seafood are on the way to the US, so we hope that the tax period is calculated on the day shipments leave Vietnam instead of the day shipments arrive in the US," he said.

On the other hand, a huge amount of material for producing animal feed, especially soybeans and soybean meal, comes from the US, so Nam suggested cutting the import tax on these materials.

A representative of the Vietnam Textiles and Apparel Association said that textiles and apparel exports to the US last year reached about $16.6 billion, accounting for 38 per cent of the industry's total export turnover. They also import about $1.2 billion in cotton, fabric, and other materials every year.

"Vietnam has surpassed China to become the leading vendor in this industry to the US market. This benefits both sides. US citizens can buy apparel products at affordable prices that factories in the US cannot provide," he said. "We are trying to invest and carry out the weaving and dying stages to ensure that the origin of all fabric materials is completely Vietnamese."

Dinh Viet Phuong, CEO of Vietjet Air. Photo: VGP

Dinh Viet Phuong, CEO of Vietjet under Sovico Group, said that this year, Vietjet will receive 12 Boeing aircraft worth $1.8 billion. The total direct and indirect purchase contracts for US products (20 engines for Airbus aircraft and other equipment) this year will increase the total purchase cost to about $2.2 billion.

"Vietjet will receive 16 aircraft next year, 39 aircraft in 2027, and an accumulated total of 200 aircraft by 2030," Phuong said. "These high-value contracts have significantly contributed to two-way trade between Vietnam and the US."

The businesses and associations present at the meeting affirmed their readiness to increase imports of materials from the US, and provide evidence to prove origin to aid the negotiation process.

Representatives of the American Chamber of Commerce in Vietnam, the US-ASEAN Business Council, and the US Embassy highly appreciated Vietnam's timely and harmonious response to the US tax imposition. They highlighted Vietnam's advantages, and pledged to remove barriers.

VIR