Prime Minister Chính Responds to US Countervailing Duties

Hanoi, The Gulf Observer: Prime Minister Phạm Minh Chính on Thursday morning chaired a meeting of the Government’s Standing Committee with key ministries and agencies to evaluate the implications of the United States’ recent imposition of countervailing duties on goods from multiple countries, including Vietnam.

During the meeting, the Prime Minister underscored the increasingly complex and unpredictable nature of global trade competition. He reaffirmed Vietnam’s commitment to addressing these challenges through comprehensive efforts across political, diplomatic, economic, and people-to-people channels.

Expressing hope for a recalibration of US tariff policies, PM Chính emphasized the robust bilateral relationship between the two nations, the aspirations of their peoples, and Vietnam’s proactive stance in fostering economic cooperation.

Strategic Response and Task Force Formation

Looking ahead, the Prime Minister directed ministries and agencies to maintain a calm, strategic, and proactive approach in formulating timely and effective responses to mitigate external economic pressures. He highlighted Vietnam’s demonstrated resilience in overcoming global disruptions such as the COVID-19 pandemic, geopolitical conflicts, and supply chain disturbances.

To ensure a comprehensive response, the government will establish a rapid-response task force led by Deputy Prime Minister and Foreign Minister Bùi Thanh Sơn. Concurrently, Deputy Prime Minister Hồ Đức Phớcs will oversee ministries in gathering feedback from businesses, particularly major exporters, to address their concerns effectively.

Turning Challenges into Opportunities

PM Chính stressed that while the tariff imposition presents economic challenges, it also provides an opportunity for Vietnam to enhance its economic resilience and strengthen its national economy. He reiterated the government’s focus on sustainable economic restructuring, emphasizing green transformation, digitalization, technological advancements, and innovation as key drivers of future growth.

Reaffirming Vietnam’s commitment to an independent and self-reliant economy, the Prime Minister outlined a strategy for deep, substantive, and effective international integration. This includes diversifying markets, expanding product portfolios, increasing supply chain localization, and maximizing domestic market potential and resources. Despite external pressures, Vietnam remains steadfast in its goal of achieving GDP growth of 8 per cent in 2025.

US Tariff Measures and Trade Relations

As of April 2, 2025, the United States has announced the implementation of a 46 per cent tariff on imports from Vietnam. This policy forms part of a broader trade measure imposing varying tariff rates on numerous countries, with a baseline tariff of 10 per cent on all foreign-made goods. The 46 per cent tariff on Vietnamese imports is comprehensive, affecting a broad spectrum of products across various industries.

Vietnam remains the United States’ eighth-largest trading partner in goods, with total bilateral trade reaching US$149.7 billion in 2024, accounting for 2.8 per cent of the US’s total goods trade. Additionally, Vietnam stands as the sixth-largest exporter to the US, with exports valued at $136.6 billion, representing 4.2 per cent of total US imports. Notably, Vietnam ranks third in terms of trade surplus with the US, amounting to $123.5 billion.

The government of Vietnam will continue diplomatic engagements and negotiations with the United States to ensure that trade relations remain mutually beneficial and aligned with the long-term economic aspirations of both nations.