Ministry seeks ways to expand export markets amidst US’s 20% reciprocal tariff

Ministry seeks ways to expand export markets amidst US’s 20% reciprocal tariff

The ministry is making the most of opportunities and the recovery trends of foreign markets to boost exports, and effectively tackling difficulties in economic and trade relations.

Garment production for export at Hung Viet Garment Company, Hưng Yên Province. — VNA/VNS Photo

The Ministry of Industry and Trade (MoIT) said it is focusing on effectively exploiting 17 free trade agreements (FTAs) and other trade deals signed by Việt Nam to promote growth, given the US’s official application of a 20 per cent reciprocal tariff on Vietnamese imports.

The ministry is also making the most of opportunities and the recovery trends of foreign markets to boost exports, and effectively addressing difficulties, obstacles, and disputes in economic and trade relations to contribute to stabilising and expanding export markets and attracting foreign investment.

At the same time, it has supported enterprises in expanding and diversifying sources of input materials for export production, thereby reducing dependence on a single import market for raw materials.

In addition, the ministry has closely monitored the implementation and application of trade defence measures by other countries on Việt Nam’s export products in order to proactively develop early and long-term response strategies.

According to a representative of the MoIT, the ministry will continue to promote the expansion and diversification of export markets by researching new and potential ones with untapped potential in regions such as the Middle East, Africa and Latin America.

In parallel, it will push forward negotiations for new FTAs, including one with the European Free Trade Association (EFTA), one with the Southern Common Market (MERCOSUR), and those with the Gulf Cooperation Council (GCC) countries, India, Pakistan, Egypt and the Southern African Customs Union (SACU).

Furthermore, the ministry will also focus on negotiating and signing cooperation agreements in the fields of economy, trade, and industry, especially in areas where Việt Nam has strengths.

Garment production for export at Hung Viet Garment Company, Hưng Yên Province. — VNA/VNS Photo

Recently, Minister Nguyễn Hồng Diên shared that it has actively engaged in discussions and negotiations to move towards signing government-level rice trade deals with Malaysia, Indonesia, the Philippines, Singapore and Brazil.

More efforts will be made to effectively implement trade defence measures, and prevent origin fraud and illegal transshipment, promote international cooperation in emerging areas such as energy transition, digital transformation, circular economy, technology transfer, and the application of scientific and innovative achievements to develop foundational industries.

In particular, the MoIT will pay attention to fostering connections and forming strategic alliances between Vietnamese manufacturing sectors and global production and supply chains. This moves aims to help Vietnamese enterprises gradually enhance their competitiveness, thereby maintaining and strengthening their positions in the global value chain.

In particular, through the Vietnam E-commerce and Digital Technology Application Forum 2025, scheduled to take place from September 4 to 6 in HCM City as part of the Vietnam International Sourcing 2025, the MoIT has directed the Vietnamese Trade Offices abroad to invite more than 300 international business delegations from over 60 nations and territories to join to seek opportunities for partnerships, import of Vietnamese goods, and investment connections.

The MoIT reported on August 1 that the US Government has lowered reciprocal tariff on Vietnamese imports to 20 per cent from the planned rate of 46 per cent.

The new tariff was detailed in an Executive Order signed by President Donald J. Trump, which adjusts rates for 69 countries and territories listed in Annex I.

Both countries are due to continue discussions to finalise a reciprocal trade agreement grounded in the principles of openness, constructiveness, equality, respect for independence, self-reliance, and political systems, mutual benefit and consideration of each other's development levels, the ministry said. 

Bizhub