Vietnamese PM Chính: US Tariff Hike a Chance to Restructure Economy, Diversify Markets
Hanoi, The Gulf Observer: Vietnamese Prime Minister Phạm Minh Chính has called on the nation to view the United States’ newly imposed reciprocal tariffs not as a threat, but as an opportunity to restructure Vietnam’s economy, production, exports, and markets. Speaking at the Government’s monthly meeting and an online conference with local authorities on Sunday, the Prime Minister urged a calm, proactive, and flexible response to ensure stability and pave the way for rapid, sustainable development.
PM Chính acknowledged the achievements of the first quarter of 2025, highlighting that international organisations such as the World Bank and the United Nations have forecasted Vietnam’s economic growth at 6.8% and 6.6%, respectively—both the highest in Southeast Asia. Despite these encouraging signs, he pointed out challenges including macroeconomic pressures, inflation control, high interest and exchange rates, and the sudden US tariffs.
While noting that first-quarter GDP exceeded expectations at 6.85%—the highest since 2020—he stressed that public investment disbursement remains below last year’s levels, calling for intensified efforts moving forward. “Difficulties require greater determination and resilience,” he stated, urging the Government to maintain its target of 8% GDP growth in 2025 while preserving macroeconomic stability, social welfare, and quality of life.
The Prime Minister reiterated that while exports remain a key growth driver, they are not Vietnam’s sole economic pillar. He emphasised the importance of leveraging Vietnam’s 17 free trade agreements to diversify trade relations and reduce dependence on any single market.
To respond effectively to the US tariff challenge, PM Chính ordered ministries and localities to swiftly eliminate obstacles for foreign and especially US businesses, strengthen cooperation with associations and large enterprises, and ensure transparency in addressing US concerns, particularly on intellectual property and origin fraud.
He also instructed major media agencies to disseminate accurate and comprehensive information, affirming the Party and State’s commitment to protecting businesses, investors, and national interests.
In addition, the Prime Minister directed institutional reforms and administrative streamlining, setting ambitious 2025 targets: reducing administrative processing times, cutting business costs, and removing business conditions—all by at least 30%. He also mandated that 100% of administrative procedures be handled independently of provincial boundaries.
To stimulate growth, PM Chính urged the renewal of traditional drivers while developing new ones. These include accelerating public investment, enhancing trade relations with the US, China, and other key partners, fully utilising existing FTAs, and expanding into untapped markets such as the Middle East, Central Asia, Eastern Europe, Latin America, and Africa.
He instructed the State Bank of Vietnam to implement proactive and flexible monetary policy in tandem with focused fiscal measures. Credit growth should be directed toward priority sectors such as agriculture, export, and national infrastructure. Meanwhile, the Ministry of Finance is to prepare economic scenarios for the rest of 2025 and expedite critical legislative work, including policies on global minimum tax and VAT reduction.
Infrastructure remains a core priority. PM Chính directed the Ministry of Construction to fast-track work on reaching 3,000 km of expressways by 2025 and advance construction of the Long Thành International Airport. The Government also aims to inaugurate and launch 50 key projects to commemorate the 50th anniversary of national reunification.
Vietnam’s economic outlook remains robust, with CPI rising just 3.13% year-on-year and state budget revenue up 29.3%, reaching 36.7% of the annual target. Foreign trade increased by 13.7%, resulting in a $3.16 billion trade surplus. Foreign direct investment (FDI) soared to nearly $11 billion in registered capital (up 34.7%) and $5 billion in disbursed capital (up 7.2%).
“These figures confirm that Vietnam is among the world’s fastest-growing economies,” PM Chính concluded, underscoring the nation’s ability to turn global headwinds into strategic advantages.
