Deputy Minister of Industry and Trade Truong Thanh Hoai attended the regular Government Press Conference in March 2025

At the press conference, Minister and Head of the Government Office Tran Van Son and representatives of ministries and branches answered a number of questions from reporters. The questions focused on areas under the management of the Ministry of Industry and Trade, Ministry of Finance, Ministry of Education and Training, Ministry of Culture, Sports and Tourism, and Ministry of Home Affairs.

Reporter Ky Thanh (Finance - Investment Newspaper) asked: The United States has announced a 46% tax rate on Vietnam's export goods. How does the Ministry of Industry and Trade assess this move? How will this impact Vietnam's main export industries and what are the solutions to cope?

Deputy Minister Truong Thanh Hoai replied as follows:

The 46% tax rate that the United States has just applied to Vietnamese goods exported to the US market since April 9 may have a significant and multi-dimensional impact on Vietnam's export and economic growth activities in the coming time; create a negative impact on Vietnam's export and economic growth activities, affect the development of a number of processing and manufacturing industries, attract FDI, domestic investment, as well as services and employment of domestic workers. Some key export items such as computers, electronic products and components; machinery, equipment, tools, spare parts; textiles, footwear, etc.; the part of products exported to the United States in the processing and manufacturing sector faces the risk of decreasing export turnover.

The reason is very clear, when taxes increase, the price of Vietnamese goods in the US will increase, the level of competition with other countries' goods will be less. Second, the purchasing power of US consumers will also decrease, so Vietnamese goods will decrease.

This also involves the contract partners we have signed, US businesses will also consider whether to continue the contract with this policy or not. Second, new contracts will be relatively difficult.

Currently, the Government is taking active measures to engage with the US side and find solutions that are harmonized for us.

Deputy Minister Truong Thanh Hoai

In recent times, the Ministry of Industry and Trade has proactively implemented a series of measures, increased work at all levels of the United States to clarify Vietnam's stance. After the US President announced the reciprocal tax rate, on the morning of April 3, 2025, Minister of Industry and Trade Nguyen Hong Dien sent a diplomatic note to the US Trade Representative requesting to postpone the decision to impose the above tax to discuss and find a solution that harmonizes the interests of both sides; at the same time, requested to arrange a phone call as soon as possible to discuss and handle this issue.

Later, in a phone call on the evening of April 4, General Secretary To Lam and President Donald Trump affirmed their desire to continue to strengthen bilateral cooperation for the benefit of both countries; Vietnam is ready to negotiate with the United States to reduce import tariffs to 0% for goods imported from the United States, and at the same time propose that the United States apply similar tariffs to goods imported from Vietnam. This is an important step in the process of resolving the US tariff issue.

In the coming time, through the policy dialogue mechanism of the Vietnam - US Trade and Investment Council (TIFA), the Ministry of Industry and Trade will coordinate with relevant ministries and branches to maintain close exchanges with US partners, coordinate with the US to handle existing issues in bilateral economic and trade relations, as well as study appropriate economic and trade cooperation frameworks in the new situation to serve the interests of the business communities of the two countries.

In addition, the Prime Minister has established a Working Group to enhance cooperation and proactively adapt to the adjustments of the US economic and trade policies, with Deputy Prime Minister Bui Thanh Son as Head of the Working Group, the Minister of Industry and Trade as Deputy Head of the Working Group, and members being leaders of relevant ministries and branches. The Ministry of Industry and Trade is the standing agency of the Working Group.

In the coming time, the Working Group will be responsible for assisting the Prime Minister in closely monitoring developments in the world and the region, especially adjustments to the US economic and trade policies, to proactively advise, propose and recommend to the Government and the Prime Minister measures to flexibly, promptly, appropriately and effectively adapt to the world and regional situation and the US policy adjustments in the coming time, overcome challenges, seize opportunities, continue to maintain a peaceful and stable environment, a favorable foreign situation, and maximize external resources for economic growth and development.

In the coming time, our exports will face many challenges, so ministries and branches will closely coordinate with the Vietnamese business community and foreign enterprises investing and doing business in Vietnam to effectively implement the proposed solutions, aiming to achieve export growth in 2025.

The first solution is to take advantage of the existing strengths of 17 Free Trade Agreements with over 60 countries and territories; 70 bilateral economic and trade cooperation mechanisms.

Second, promote the strategy of diversifying export markets, continue to promote negotiations of FTAs ​​with new markets in the Middle East, Latin America, Central Asia and other emerging markets.

Third , strengthen and enhance the effectiveness of trade promotion work, and improve logistics infrastructure to reduce transportation costs and enhance the competitiveness of Vietnamese goods.

Fourth , support to improve the capacity of domestic manufacturing and exporting enterprises of Vietnam to ensure adaptation to the market and development trends. Here we must have more drastic policies for the processing and manufacturing industry, promote the development of supporting industries to promote domestic development, meet the origin requirements of countries.

Fifth, protect the legitimate rights and interests of businesses as well as provide early warning and timely handling of risks of lawsuits or trade defense cases to minimize the damage to Vietnam.

Sixth , expand the Vietnamese trade office system abroad to provide market information, business opportunities and better support for businesses.

Seventh, the Ministry of Industry and Trade assessed that, despite facing many challenges, this is also an opportunity to restructure the economy towards rapid but sustainable development, greening, digitalization, relying on science and technology, innovation; promoting the construction of an independent, self-reliant economy associated with deep, substantive, and effective international integration; promoting market expansion, diversification of markets, products, and supply chains; promoting localization; promoting exploitation of domestic markets and resources.

For Vietnamese enterprises, to minimize risks from international trade fluctuations, the Ministry of Industry and Trade recommends that domestic enterprises take the following measures:

First, proactively update market information: Regularly monitor and update information about the market and trade policies of countries, to promptly adjust appropriate business strategies.

Second, on the basis of existing Free Trade Agreements, diversify export markets: Effectively exploit key markets, traditional markets, as well as develop small markets, niche markets and open up new potential markets.

Third , improve product quality: Ensure products meet technical, labor and environmental standards of export markets, to increase competitiveness and reduce the risk of being subject to trade defense measures.

Fourth , 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.

Fifth , strengthen trade defense capacity, raise awareness and ability to respond to foreign trade defense measures, through regular information updates and participation in relevant training courses.

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

The Ministry of Industry and Trade will continue to accompany Vietnamese enterprises in their efforts to export to the US market, while actively researching to expand potential export markets./.

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Source: https://moit.gov.vn/tin-tuc/hoat-dong/hoat-dong-cua-lanh-dao-bo/thu-truong-bo-cong-thuong-truong-thanh-hoai-tham-du-hop-bao-chinh-phu-thuong-ky-thang-3-2025.html