Hanoi (VNA) 🍌– The proposed imposition of reciprocal tariffs of up to 46% by the US on Vietnamese goods has been labelled “unjust” and “lacking in scientific justification” by Vietnam’s Ministry of Industry and Trade, amid rising concerns over the potential impact on bilateral relations and trade flows.

Speaking to the press, Ta Hoang Linh, Director General of the ministry’s European-American Market Department, argued that the tariff proposal failed to reflect Vietnam’s goodwill and ongoing efforts to address the long-standing trade imbalance between the two nations. Vietnam and the US are economically complementary rather than directly competitive, Linh said. Vietnamese exports largely compete with products from third countries, not with those of US firms. In fact, goods from Vietnam help US consumers access affordable options. He also noted that the average Most Favoured Nation (MFN) tariff rate Vietnam currently imposes on imported goods, including those from the US, stands at just 9.4%. He added in recent times, the Vietnamese Government and relevant ministries had taken active steps to resolve a range of issues faced by US businesses operating in Vietnam. This included the issuance of a decree to lower MFN tariffs, under which 13 categories of US-exported goods with competitive advantages benefited directly. In addition, a number of US-invested projects in Vietnam have received considerable attention, with authorities working to address and remove obstacles to their progress.

The tariffs are expected to remain in effect until the US determines that the perceived threat posed by the trade deficit and unfair trading practices has been resolved, mitigated, or sufficiently addressed. For this reason, the Ministry of Industry and Trade believes that there is still room for dialogue and negotiation between the two sides in order to reach a mutually beneficial outcome, Linh noted. On April 2, shortly after the US announced its decision to impose tariffs, Minister of Industry and Trade Nguyen Hong Dien issued an official note requesting that Washington temporarily suspend the measure to allow time for further discussions and the pursuit of a balanced solution for both parties. The sides are currently arranging a phone call between the two ministers, as well as technical-level talks with those at the US Trade Representative (USTR), at the earliest possible opportunity. Linh said that, should Vietnam and the US fail to reach a constructive resolution, the imposition of these tariffs could have an adverse impact on Vietnam’s export growth targets for this year. However, he stressed that the ministry has anticipated this scenario and been well-prepared. Specific action plans have already been proposed to the Government, and guidance issued to businesses on the necessary steps to take in the event of such developments. The ministry is targeting a 12% increase in exports for 2025, translating to around 450 billion USD. This comes as the global economy gradually recovers and Vietnam continues to capitalise on its network of free trade agreements. But officials warn that headwinds are ahead, necessitating close coordination between government bodies and the business sector. According to Linh, Vietnamese exporters are being urged to utilise the country’s extensive network of 17 free trade agreements covering over 60 countries and territories, as well as 70 bilateral cooperation frameworks. Simultaneously, diversification of export markets remains a key priority. He added that the ministry will continue efforts to open up under-tapped destinations with plans to accelerate talks for new FTAs with regions including the Middle East, Latin America, Central Asia and other emerging markets. Meanwhile, the ministry is also prioritising the expansion of its overseas trade office network, alongside ramping up trade promotion and investment in logistics infrastructure to reduce shipping costs and boost the competitiveness of Vietnamese goods./.