Many expectations after General Secretary To Lam's phone call with US President

Smart and timely move

Commenting on the phone call on the evening of April 4 between General Secretary To Lam and US President Donald Trump, economic expert Le Dang Doanh said that this was a very wise and correct step, creating many positive signals.

" Amidst the complicated situation, General Secretary To Lam took the initiative to call US President Donald Trump to discuss the tariff situation. During the phone call, both sides emphasized the good relationship between Vietnam and the US. The General Secretary also invited President Trump to visit Vietnam.

I think this is a very timely effort to promote the relationship between the two countries, thereby promoting bilateral negotiations on trade issues, resolving emerging issues in recent times.

After the phone call, Mr. Trump also shared on Truth Social, expressing his welcome for the positive exchange between him and General Secretary To Lam.

This is a signal that makes me believe that the relationship between Vietnam and the US will continue to improve in a positive direction in the near future," said Mr. Doanh.

General Secretary To Lam had a phone call with President Donald Trump on the evening of April 4. (Photo: VNA)

Emphasizing the significance of the phone call, expert Le Dang Doanh said that this is certainly a reassuring medicine for the Vietnamese business community that is confused and worried about the tax rate information.

“The phone call is also a way to show Vietnam’s positive and proactive attitude in its relationship with the US. While Vietnam is facing a 46% tax from the US, General Secretary To Lam took the initiative to call and emphasize the good relationship with the US. I think that is the right and wise move.

I really hope and believe that after the General Secretary's phone call, Vietnamese businesses will have more motivation to soon stabilize their spirit and continue to promote trade cooperation between Vietnam and the US," Mr. Doanh emphasized.

Sharing the same view, economic expert Vo Tri Thanh commented that President Donald Trump's public sharing and expressing satisfaction after the phone call with General Secretary To Lam is a very positive signal in Vietnam's tax reduction negotiation process.

According to Mr. Thanh, Vietnam's spirit in resolving tariff issues is still dialogue to find a balance, beneficial for both sides, while also relieving partners' concerns.

“I hope the two sides can find a positive common ground, bringing positive things to both sides. This phone call has also reduced the immediate negative pressures on economic, trade and investment activities,” Mr. Thanh commented.

Meanwhile, Mr. Mac Quoc Anh, Vice President of the Hanoi Association of Small and Medium Enterprises (Hanoisme), said that economic and trade relations between Vietnam and the US have continuously developed strongly in recent years.

In that context, any high-level political interaction between the two countries, especially a phone call between the Vietnamese leader and the US President, carries important symbolic and practical significance.

In terms of foreign affairs, this phone call demonstrates the goodwill between the two governments, paving the way for economic cooperation, security, and strategic dialogue agreements.

As for the business community, the signals emerging from high-level discussions will significantly affect investor confidence and practical business operations.

“The phone call was considered a success in terms of “open dialogue”. The two sides are said to have discussed many topics, notably strengthening the supply chain, promoting sustainable trade, as well as enhancing cooperation in the fields of digital transformation, education and science and technology.

This brings positive expectations, helping to maintain the momentum of bilateral trade development, especially in the context of global economic fluctuations," said Mr. Quoc Anh.

According to Hanoisme Vice President, the US is looking for supply links in the Indo-Pacific region to diversify its supply chain and reduce over-reliance on certain markets. This is an opportunity for Vietnam to assert its role as a hub for supplying quality goods to the US.

The phone call appeared to have stressed the importance of upgrading relations and expanding cooperation in more areas, from security, politics to economics and technology.

“It is possible that the US will loosen or reconsider some technical barriers for Vietnamese goods. On the other hand, Vietnam also aims to perfect its management mechanism, strictly meeting international standards on origin, quality and sustainability in the production process; Developing the digital economy and technology infrastructure...

The US commitment to support or cooperate in technology is a positive signal, contributing to promoting Vietnam's high-quality service sector. With these arguments, the Association believes that in the long term, bilateral relations will continue to be strengthened, creating favorable conditions for businesses," said Mr. Quoc Anh.

However, the Vice President of Hanoisme said that it is necessary to closely monitor specific developments in import-export regulations, developments in tariff policies, as well as labor and environmental commitments in FTAs ​​or bilateral agreements.

Experts commented on many positive signals after the phone call with General Secretary To Lam. (Illustration photo)

Businesses have high expectations

According to Mr. Quoc Anh, the Hanoi Association of Small and Medium Enterprises currently has more than 10,000 small and medium enterprises, mainly operating in the fields of light industrial production, agricultural products, handicrafts, textiles and interior and exterior wooden furniture.

In the first 6 months of 2023, about 65% of enterprises in the Association exported directly or indirectly to the US market. These enterprises, especially those that are heavily dependent on the US market (exports to the US account for 30% - 70% of total revenue), are closely monitoring signals on tax policies, technical standards, as well as consumption trends of the US market.

Before the phone call last night, the general sentiment of exporting enterprises reflected in internal surveys such as concerns about trade defense policies. About 35% of enterprises in the association shared that they were under pressure on working capital and had difficulty expanding production scale.

“Because of the pressure, many businesses received information about the phone call last night with caution mixed with hope. They hope that during the discussion, Vietnam and the US will agree to promote cooperation, remove trade barriers and create a more favorable corridor for Vietnam's exports,” Mr. Quoc Anh emphasized.

On the evening of April 4, General Secretary To Lam had a phone call with US President Donald J. Trump about Vietnam-US relations.

General Secretary To Lam highly appreciated the exchange, in which the two leaders affirmed their desire to continue strengthening bilateral cooperation, for the benefit of both countries and contributing to peace, stability and development in the region and the world. The two leaders also assessed that the bilateral relationship is developing well in all fields.

Regarding bilateral trade relations, the two leaders discussed measures to continue promoting trade, in which General Secretary To Lam affirmed that Vietnam is ready to negotiate with the US to reduce import tax to 0% for goods imported from the US, and at the same time proposed that the US apply similar tax rates to goods imported from Vietnam; continue to import more goods from the US that Vietnam needs and encourages; create favorable conditions for companies from the US to further increase investment in Vietnam.

The two leaders affirmed that they will discuss to soon sign a bilateral agreement between the two countries to concretize the above commitments.

Thanh Lam

Source: https://vtcnews.vn/nhieu-ky-vong-sau-cuoc-dien-dam-cua-tong-bi-thu-to-lam-voi-tong-thong-my-ar935937.html