Professor Vu Minh Khuong: Vietnam needs to take advantage of all dialogue channels in handling tariff issues with the United States.

Professor Vu Minh Khuong: Vietnam needs to take advantage of all dialogue channels in handling tariff issues with the United States - Photo: VGP

Speaking with the Government Electronic Newspaper, Professor Vu Minh Khuong shared lessons learned and solutions to deal with the US imposing a 46% tax on Vietnamese goods from April 9.

The Prime Minister's establishment of a rapid response team is a positive and timely signal.

The United States has just announced its decision to impose a 46% tax on Vietnamese goods entering its market. What is your opinion on this decision, Professor?

Professor Vu Minh Khuong: The US decision is part of its overall trade adjustment strategy to ensure balance and fairness in bilateral trade relations. Countries with large trade surpluses with the US, including Vietnam, will need to adjust their policies to reduce this surplus in a reasonable manner.

We are currently facing two main challenges. First, Vietnam does not have a bilateral free trade agreement with the United States, while it enjoys preferential tariffs with many other partners such as China, South Korea and ASEAN. This may cause the United States to perceive trade relations with Vietnam as not truly balanced. Therefore, we need to proactively demonstrate goodwill and comprehensively improve access to the US market.

Second, Vietnam’s trade surplus with the United States is currently very high, with exports exceeding $100 billion, while imports from the United States are still quite modest. To create a balance, Vietnam needs to increase imports from the United States, especially in the high-tech and agricultural sectors, to create bilateral benefits and strengthen the trust of its partners.

In my opinion, although the challenges are great, this is also an opportunity for Vietnam to fundamentally reform and improve its integration capacity. The Prime Minister's establishment of a rapid response team on this issue is a positive and timely signal, helping to bring together experts, investors and law firms to come up with solutions.

An important lesson that can be learned from Singapore is that when the US imposed a 10% tariff, Singapore did not react in a confrontational manner but proactively met with US partners to understand their requirements. Singapore focused on creating greater value for both sides, turning challenges into opportunities to strengthen the relationship. This is also the direction that Vietnam needs to consider, showing goodwill and coming up with creative solutions to maintain a sustainable trade relationship.

Vietnam has every opportunity to negotiate.

According to the Professor, what solutions and strategies need to be focused on in the coming time to deal with this problem?

Professor Vu Minh Khuong: Vietnam has every opportunity to negotiate because this tax rate is also a tool to promote trade dialogue. We have and need to continue to demonstrate our goodwill to cooperate by establishing a specialized negotiating team and carefully studying the legal and economic bases to make reasonable proposals.

This time, we need structural reform, which means truly opening up and creating clear conditions for the United States to see Vietnam's goodwill.

In my opinion, the important solution is to meet and dialogue immediately with US partners. We need to proactively work with relevant agencies and US trade representatives to understand clearly what they want and determine appropriate adjustment plans.

In addition, it is necessary to build a transparent and open business environment. This is where Vietnam needs to change dramatically to help US businesses have confidence in long-term investment.

We also need to treat the United States as a special trade partner. Although there is no free trade agreement, Vietnam can proactively apply similar preferential policies to show its appreciation for this market.

Equally important is tapping into the network of U.S. friends and partners. Law firms, business associations, and major investors can play an important role in the negotiation process.

In addition, important dialogue channels need to be utilized. We can quickly convey our goodwill for cooperation and propose solutions through the embassies of both countries.

Through this, what recommendations does the Professor have for Vietnam's future trade strategy?

Professor Vu Minh Khuong: This tax imposition is a wake-up call that Vietnam needs to quickly improve its trade and investment management system. We need to increase transparency, improve the business environment and digitalize to enhance competitiveness.

This is also the time for Vietnam to step up cooperation with foreign investors, showing deep goodwill to businesses from the United States, Japan, Korea, Singapore, etc. When they encounter difficulties due to policy fluctuations, Vietnam needs to quickly sit down to discuss and find mutually beneficial solutions.

Another important point is to improve the capacity for innovation, improve labor productivity and invest heavily in technology. These factors will help the Vietnamese economy to be more resilient to fluctuations in the global market.

Negotiations need to be conducted immediately, from now until April 9. This is an important time to take advantage of all dialogue channels, mobilize leading experts and friends of Vietnam in the United States to find the optimal solution. If done well, this will not only be an opportunity for Vietnam to overcome difficulties but also a "push" to carry out fundamental reforms, helping the country rise stronger in the future.

Thank you very much!

Anh Tho (performed)

Source: https://baochinhphu.vn/gs-vu-minh-khuong-viet-nam-can-tan-dung-moi-kenh-doi-thoai-trong-xu-ly-van-de-thue-quan-voi-hoa-ky-102250404085243878.htm