Impact of New Tariffs on Vietnam's Export Economy

"The situation is tense," Nguyen Dinh Tung, chairman of fruit exporter Vina T&T Group, expressed concern over the impending 46% reciprocal tariff on Vietnamese exports to the U.S. This significant hike could deter American buyers, pushing them towards markets with lower tariffs, such as Thailand.

Last year, the U.S. imported $360 million worth of fruits and vegetables from Vietnam, with Vina T&T Group contributing $62 million. The new tariffs threaten to disrupt this flow, especially in sectors like electronics, garments, and footwear, which are among Vietnam's top exports to the U.S.

Strategies to Mitigate Tariff Impact

Experts suggest diversifying export markets and bolstering the domestic economy as potential strategies to counteract the tariff's effects. Nguyen Minh Duc highlights the competitive disadvantage Vietnam faces, with Thailand's lower tariff rate of 36%.

Hoang Anh Tuan, Vietnam’s consul general in San Francisco, interprets the tariffs as part of Trump's broader strategy to address the U.S. trade deficit. However, there's room for negotiation, especially for products like technology, which could see increased imports from the U.S. to balance trade relations.

Looking Ahead

The Vietnamese government is urged to take immediate action, including reducing administrative costs and supporting businesses, to maintain competitiveness. Tran Huu Linh mentions plans to stimulate domestic consumption and ease regulatory hurdles, drawing lessons from China and Thailand's policies.