Ministry of Finance speaks out about US tax increase on Vietnamese goods

Deputy Minister of Finance Nguyen Duc Chi exchanged information at the regular press conference of the first quarter of 2025 of the Ministry of Finance - Photo: VGP/HT

This is the opinion of Deputy Minister of Finance Nguyen Duc Chi at the regular press conference of the first quarter of 2025 of the Ministry of Finance on the afternoon of April 3 in Hanoi regarding the new tax policy of the United States, in which imported goods from Vietnam may be subject to a tax rate of up to 46%, much higher than the current rate.

Deputy Minister of Finance Nguyen Duc Chi emphasized: Vietnam has been very proactive in reviewing and adjusting import tax rates on many goods, especially goods imported from the United States. This is not only to respond appropriately to the new tax policy of the United States but also to move towards a more sustainable trade balance.

"We need to persistently seek solutions and continue to discuss with the United States to achieve a reasonable trade balance, but should follow the direction of mutual development rather than narrowing trade. The most important thing is to ensure the interests of businesses and consumers of the two countries," Deputy Minister Nguyen Duc Chi shared.

According to Deputy Minister Nguyen Duc Chi, the tax rate recently announced by the United States is the maximum rate that can be applied, while the specific rate for each item and implementation roadmap have not yet been clarified.

"This weekend, the Vietnamese Government leader will have a working trip to the United States, which is expected to help both sides better understand the impact of the new tax policy and take appropriate support steps," the leader of the Ministry of Finance informed.

Mr. Truong Ba Tuan, Deputy Director of the Department of Tax, Fee and Charge Policy Management and Supervision (Ministry of Finance) added that Vietnam has implemented many tax adjustment policies. Decree 73/2025, which has just been issued, has reduced import taxes for more than 16 groups of goods, including automobiles, agricultural products, ethanol, wood, etc., to create conditions for businesses to access the market with lower taxes.

Mr. Truong Ba Tuan, Deputy Director of the Department of Tax, Fee and Charge Policy Management and Supervision (Ministry of Finance) exchanged information at the Press Conference - Photo: VGP/HT

From a tax policy expert perspective, Mr. Truong Ba Tuan analyzed: In addition to the tariff factor, there may be other reasons why the United States imposes such high reciprocal tariffs on Vietnamese goods. Because, in fact, according to a report from the Office of the United States Trade Representative: Vietnam's average import tariff is quite low, most US goods exported to Vietnam are subject to a tax rate of about 15% or less.

"When consulting to amend Decree 73, we reviewed all taxes on imported goods such as environmental protection tax, special consumption tax... That is the basis for proposing a balanced tax rate between Vietnam and its trading partners. However, if we look at the number announced by the US this morning, it is not purely a tax factor. We must carefully and quickly understand their basis to have a suitable solution because if it were purely a tax factor, it would not be to such an extent.

The average difference between MFN import tariffs between Vietnam and the United States is not too high at present, so non-tariff countermeasures will play a decisive role in this issue.

"It is necessary to conduct careful research to understand the basis of the US when imposing this tax rate, thereby finding appropriate solutions to protect domestic enterprises. The Ministry of Finance is coordinating with ministries and branches to comprehensively assess the impact of the new tax policy from the US," said Mr. Truong Ba Tuan.

Earlier, on the morning of April 3, Prime Minister Pham Minh Chinh chaired a meeting of the Government Standing Committee with ministries and branches to assess the situation and discuss immediate and long-term solutions after the United States announced reciprocal tariffs on goods from many countries, including Vietnam.

The Government leader expressed his hope that the US side would have a policy that is consistent with the good relations between the two countries, the wishes of the people of both sides and Vietnam's efforts in recent times, in line with the conditions and circumstances of Vietnam as a developing country that is still having to overcome the severe and prolonged consequences of many years of war.

The Head of Government has directed a number of comprehensive, harmonious, reasonable, and effective measures, both short-term and long-term, with the US side, to promote balanced and sustainable trade relations, facilitate investors from both sides, and ensure the legitimate and legal rights and interests of related entities...

Huy Thang

Source: https://baochinhphu.vn/bo-tai-chinh-len-tieng-ve-viec-hoa-ky-tang-thue-len-hang-hoa-viet-nam-102250403182217275.htm