Vietnam's Strategic Response to US Tariff Announcement

Deputy Prime Minister Bui Thanh Son has been appointed to lead a newly established quick response team, following the US announcement of imposing steep tariffs on imports from over 180 trading partners. This move was disclosed during a crucial meeting attended by heads of various ministries and agencies, including Finance, Industry and Trade, Agriculture and Environment, and Science and Technology, alongside the State Bank of Vietnam.

Prime Minister Pham Minh Chinh at the meeting on April 3, 2025. Photo by VNA

US Tariff Details and Vietnam's Appeal

The US plans to implement reciprocal tariffs, with rates up to 50% for some of its largest trading partners starting April 9. Vietnam, expressing concerns, hopes for more favorable policies considering the strong bilateral relations and its status as a developing nation recovering from war impacts.

Government's Proactive Measures

Prime Minister Pham Minh Chinh emphasized the need for "proactive and flexible measures" to navigate through these external shocks, drawing parallels to the country's resilience during the Covid-19 pandemic. Deputy Prime Minister Ho Duc Phoc has been tasked with overseeing government agencies and consulting businesses, especially major exporters.

A government meeting held on the morning of April 3, 2025, after the U.S. announced reciprocal tariffs on Vietnamese imports. Photo by VNA

Economic Restructuring and Growth Targets

Despite the challenges, the government sees this as an opportunity for economic restructuring towards sustainable development, driven by technology and innovation, with an unchanged GDP growth target of at least 8% in 2025.

Impact on Vietnamese Exports

Vietnamese businesses are bracing for significant pressure on exports, particularly in sectors like computers, machinery, and textiles, which accounted for billions in trade with the US in 2024.

Looking Ahead: Strategies and Exemptions

Experts suggest exploring cooperative mechanisms and bilateral agreements with the US, alongside attracting more US investments. Certain products may be exempt from tariffs, offering a glimmer of hope amidst the trade tensions.