Ministry of Industry and Trade: Proposes the US to temporarily suspend tariffs, both sides still have room to negotiate - Lang Son Newspaper and Radio and Television

Vietnam still has many opportunities to exploit the remaining 87% of the world's market. The Ministry of Industry and Trade will continue to make efforts to open up export routes to new markets with much room.

On April 2, 2025 (local time), US President Donald Trump issued an Executive Order on reciprocal taxes applicable to goods exported to the United States from countries around the world , including Vietnam. Regarding this issue, Mr. Ta Hoang Linh, Director of the Department of Foreign Market Development (Ministry of Industry and Trade) had an interview with the Government E-newspaper about the Ministry's official stance.

Propose the US side to postpone the decision to impose taxes

The United States has just announced that it will impose a tax of up to 46% on Vietnamese exports to this market. How does the Ministry of Industry and Trade assess this decision of the United States?

Mr. Ta Hoang Linh, Director of Foreign Market Development Department

Mr. Ta Hoang Linh: The Ministry of Industry and Trade regrets that the United States has announced a 46% tax on all Vietnamese exports to the United States, effective from April 9.

Vietnam and the United States are two complementary economies . The export and foreign trade structures of the two countries do not compete directly but complement each other, in accordance with the internal needs of each country.

Vietnamese goods exported to the United States mainly compete with third countries, not directly with US businesses in the US market. On the contrary, Vietnamese goods exported to the United States also create conditions for US consumers to use cheap goods.

In recent times, the Government and ministries have resolved a series of difficulties and obstacles for US businesses in Vietnam, and issued a Decree to reduce MFN tariffs (preferential import tariffs for countries in the WTO), in which 13 groups of advantageous US goods benefited. In addition, many US projects in Vietnam have received attention, resolved and removed difficulties and obstacles. The average MFN tariff that Vietnam imposes on imported goods is currently 9.4%.

According to the White House announcement, the reciprocal tariffs that the United States imposes on its trading partners are aimed at correcting global trade injustices, bringing manufacturing back to the country, strengthening national security, and promoting economic growth.

It is understood that the tariffs will remain in place until the United States determines that the threats posed by trade deficits and unfair trade practices are addressed, corrected or mitigated.

Therefore, the Ministry of Industry and Trade believes that there is still room for discussion and negotiation between the two sides to reach a mutually beneficial result.

On the morning of April 3, immediately after the US announced the imposition of tariffs, Minister of Industry and Trade Nguyen Hong Dien sent a diplomatic note requesting the US side to postpone the decision to impose tariffs to spend time discussing and finding a reasonable solution for both sides. We are arranging a phone call between the two Ministers as well as at the technical level with colleagues at the US Trade Representative (USTR) as soon as possible.

Difficulties were foreseen

In your opinion, how will this Decree affect Vietnam's export growth target in 2025? What solutions and recommendations does the Ministry of Industry and Trade have for businesses to ensure export growth targets?

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Mr. Ta Hoang Linh: In 2025, the Ministry of Industry and Trade aims for export growth of about 12%, equivalent to about 450 billion USD. This target is set in the context of global economic recovery and Vietnam taking advantage of signed free trade agreements.

In case Vietnam and the United States cannot find a positive solution, this tax imposition will have a certain negative impact on the export growth target.

However, this is also an issue that the Ministry of Industry and Trade has predicted and prepared for. The Ministry of Industry and Trade has also proposed a specific Action Plan to the Government and advised businesses to take necessary steps when the problem occurs.

The Ministry of Industry and Trade forecasts that in the coming time, our export activities will face many difficulties, therefore, close coordination between ministries, sectors and enterprises is needed to effectively implement the proposed solutions to achieve the export growth target in 2025.

To realize the above goal, the Ministry of Industry and Trade believes that export enterprises need to take advantage of existing strengths - 17 Free Trade Agreements (FTAs) with over 60 countries and territories and 70 bilateral cooperation mechanisms.

At the same time, businesses also need to promote the diversification of export markets. The US market accounts for 13% of global imports, but Vietnam's exports to the US account for 30% of Vietnam's total export turnover. This is both an advantage and a weakness of export activities. Vietnam still has many opportunities to exploit the remaining 87% of the world's market. The Ministry of Industry and Trade will continue to make efforts to open up export routes to new markets with much room.

The Ministry of Industry and Trade will continue to promote FTA negotiations with new markets in the Middle East, Latin America, Central Asia and other emerging markets. In addition, it will strengthen trade promotion and improve logistics infrastructure to reduce transportation costs and enhance the competitiveness of Vietnamese goods.

In addition, the Ministry of Industry and Trade also aims to expand the system of Vietnamese Trade Offices abroad to better support businesses in trade connection and export promotion.

In the long term, Vietnam will also have to promote economic restructuring, diversify markets, diversify products, and diversify supply chains to ensure rapid and sustainable development. Because a sustainable export industry cannot rely solely on processing, but must also rely on science, technology, and innovation to make the economy more resilient and minimize negative impacts from external shocks.

Vietnamese enterprises need to control the origin of raw materials.

What does the Ministry of Industry and Trade recommend domestic enterprises do to minimize risks from international trade fluctuations in the coming time?

Mr. Ta Hoang Linh: In the context of the US imposing reciprocal tariffs on global trading partners, to minimize risks from international trade fluctuations, the Ministry of Industry and Trade recommends that domestic enterprises, first of all, diversify export markets, effectively exploit key markets, traditional markets, as well as develop small markets, niche markets and open up new potential markets. At the same time, improve product quality, ensure products meet technical, labor and environmental standards of export markets, in order to increase competitiveness and reduce the risk of being subject to trade defense measures.

Vietnamese enterprises also need to control the origin of raw materials. Focus on controlling the origin of raw materials for production, ensuring compliance with the rules of origin in the FTA and avoiding risks related to trade fraud.

We must strengthen our trade defense capabilities. Businesses should raise their awareness and ability to respond to foreign trade defense measures by updating information and participating in relevant training courses.

In addition, businesses need to proactively update market information, regularly monitor and update information on markets and trade policies of countries, to promptly adjust appropriate business strategies.

The synchronous implementation of the above solutions will help Vietnamese enterprises increase their resilience to fluctuations in international trade and maintain sustainable export growth.

Source: https://baolangson.vn/bo-cong-thuong-de-nghi-hoa-ky-tam-hoan-ap-thue-hai-ben-con-khong-gian-de-dam-phan-5043092.html