Vietnam making headway in US tariff talks

Vietnam making headway in US tariff talks

At the National Assembly meeting session on June 20, Deputy Prime Minister Nguyen Hoa Binh revealed the prospects for tax negotiations with the US are positive, and the government is doing the utmost to avoid a 46 per cent tax rate.

Deputy Prime Minister Nguyen Hoa Binh

DPM Binh said that the two countries are in the process of negotiations, with the most efforts to change the 46 per cent tax rate that the US plans to impose on Vietnamese goods. Previously, General Secretary To Lam spoke with the US President over the phone, and Prime Minister Pham Minh Chinh has also been working closely with authorities at all levels to urgently develop and execute solutions.

"The government's negotiating team is actively working with the US side, and the negotiation prospects are positive, the two sides understand each other and strive to achieve the set goals," said DPM Binh. "This will contribute to removing difficulties for exporters."

However, amidst unpredictable fluctuations, DPM Binh said that Vietnam needs a long-term strategy, proactively restructuring the economy, promoting the advantages of free trade agreements signed with many countries, which is a large development space to not depend on one market only.

"It's a big world, and we are looking for partners and supporting enterprises to enter new markets," he said. "Moreover, domestic production must shift towards deep processing rather than relying on raw exports, creating higher value and driving stronger growth."

"Diversifying the market and restructuring the economy can help cope with unpredictable fluctuations. In the case of risks, the government is ready to provide tax and fee solutions to support businesses," he added.

In early April, US President Donald Trump announced the basic tax rates (10 per cent) and reciprocal taxes on imports from countries with trade surpluses with the US. The reciprocal tax for Vietnam is 46 per cent. A week later, he decided to postpone the imposition of taxes on all countries for 90 days, except China.

Since then, PM Chinh established a government negotiating team, which is led by Minister of Industry and Trade Nguyen Hong Dien. This team has been working on bilateral trade negotiations with relevant US agencies several times.

During an online negotiation session with US Secretary of Commerce Howard Lutnick and US Trade Representative Jamieson Greer on June 19, Minister Dien said that Vietnam wants to work with the US to build harmonious rules of origin, in line with the global supply chain, without discrimination and creating favourable conditions for businesses of both countries.

VIR