Prime Minister: Study to further reduce taxes, increase imports from the US

Prime Minister Pham Minh Chinh speaks at the meeting on the afternoon of April 5. Photo: VNA

On the afternoon of April 5, Prime Minister Pham Minh Chinh chaired a meeting of the Government Standing Committee with ministries and sectors in response to the US announcement of its decision to impose reciprocal tariffs on Vietnamese exports to the country. This was the second meeting in the past 3 days of Government leaders regarding this issue.

On April 4, General Secretary To Lam had a phone call with President Donald Trump, saying he was ready to negotiate with the US to reduce import tax to 0% on goods imported from the US and proposed that the US impose a similar tax on goods imported from Vietnam.

Tonight, April 5, Deputy Prime Minister Ho Duc Phoc will depart for the US on a working trip. Prime Minister Pham Minh Chinh has directed Deputy Prime Minister Ho Duc Phoc, together with the US side, to focus on implementing and realizing the content that the two leaders agreed upon during their phone call on April 4.

"The general spirit is to be ready to negotiate to reduce the tax rate to 0% on goods imported from the US and request the US to impose similar taxes," the Prime Minister added.

At the meeting, the Ministry of Finance was asked to continue to immediately review taxes and expand policies in Decree 73 in line with the high-level agreement between the two leaders. The Ministry of Industry and Trade will preside over and review to increase imports from the US of goods that Vietnam has demand for and is beneficial to import; and promote negotiations to upgrade the Vietnam-US Bilateral Trade Agreement.

A few days ago, the authorities issued Decree 73 on reducing MFN preferential import tax on 16 groups of goods, of which 13 groups are advantageous for the US. Of which, 3 types of cars have reduced tax, including passenger cars with shared luggage compartments and sports cars with a capacity of 2,000 - 2,500 cc; sedans with a capacity of 2,000 - 2,500 cc... Some wood products also have their MFN tax reduced to 0% from the previous level of 20%.

Leaders of ministries and branches attended the meeting on the afternoon of April 5. Photo: VNA

Ministries and sectors also proposed solutions to support businesses and industries in case of tax imposition, and to strengthen the fight against trade fraud, especially the import of goods from third countries for export to the US.

Concluding the meeting, Prime Minister Pham Minh Chinh affirmed that in recent times, Vietnam has taken positive and appropriate actions, demonstrating goodwill in balanced and sustainable economic and trade cooperation with the US. However, if the US implements a new tariff policy, it could affect Vietnam's economic development. Therefore, the Prime Minister requested that Vietnam continue to make efforts to negotiate to reach a common voice.

The Prime Minister requested that Government members continue to promote exchanges and contacts with the US side at all levels and channels, and address concerns from the US side in the spirit of mutual benefit.

The Prime Minister also assigned ministries and sectors to work with US businesses to remove obstacles to promote US business projects in Vietnam. Along with that, Vietnam will review goods, increase imports from the US to balance trade; continue to study appropriate tax reductions for some imported goods from the US.

This year, Vietnam aims for economic growth of at least 8%, to lay the foundation for the upcoming high growth period. In the new context, the Prime Minister affirmed that the operator will not change the growth target.

The Government leader said that the challenge from the US tariff policy is also an opportunity for Vietnam to innovate, make breakthroughs, and restructure the economy, market, and products. Therefore, the Prime Minister reminded ministries and sectors to continue to stabilize the macroeconomy, control inflation, ensure major balances; renew traditional growth drivers (investment, export, consumption), and promote new growth drivers, public investment.

Reciprocal import tariffs imposed by the US on more than 180 trading partners, of which about half of the economies are subject to a common tariff of 10%, took effect on April 5.

By April 9, they will consider high additional tariffs on about 59 countries, including Vietnam, with a tax rate of up to 46%. This tax is introduced to "counter" the import tax that Vietnam is applying to US goods, which is about 90%, according to this country's calculation.

However, according to the Ministry of Finance, the average tax rate Vietnam applies to US goods is only about 9.4%. Of which, most US goods exported to Vietnam are subject to the highest tax of 15% or lower.

According to data from the Customs Department, in 2024, Vietnam exported goods worth 119.5 billion USD to the US and imported 15.1 billion USD from this market.

VN (according to VnExpress)

Source: https://baohaiduong.vn/thu-tuong-nghien-cuu-giam-tiep-thue-tang-nhap-hang-tu-my-408802.html