Minister of Industry and Trade sends diplomatic note requesting US to temporarily suspend reciprocal tax

Mr. Ta Hoang Linh - Director of Foreign Market Development Department - Photo: BCT

In response to the news that US President Donald Trump issued a decree on reciprocal taxes on imported goods, including Vietnam, Mr. Ta Hoang Linh - Director of the Department of Foreign Market Development, Ministry of Industry and Trade - expressed "regret" when the US announced to impose a 46% tax on all Vietnamese export goods.

Imposing a 46% tax is unscientific and unfair.

* What is the Ministry of Industry and Trade's assessment of the 46% tax rate on Vietnamese exports to this market?

- Vietnam and the US are two complementary economies , not directly competitive. Vietnamese goods exported to the US compete with third countries, not directly with US businesses. On the contrary, our goods also create conditions for consumers to use cheap goods.

The average MFN tariff that Vietnam currently imposes on imported goods is 9.4%. Therefore, the reciprocal tariff that the US plans to impose on Vietnamese goods of up to 46% is unscientific and truly unfair, and does not reflect Vietnam's goodwill and efforts over the past time in dealing with the trade deficit between the two countries.

Recently, the Government and ministries have resolved a series of difficulties and obstacles for US businesses in Vietnam, issuing a decree to reduce MFN tariffs, in which 13 groups of advantageous US products benefited. In addition, many US projects in Vietnam have received attention, resolved and removed difficulties and obstacles.

According to the White House announcement, the reciprocal tariffs that the US imposes on its trading partners aim to correct global trade injustices, bring manufacturing back to the country, strengthen national security, and promote economic growth.

The tariffs will therefore remain in place until the United States determines that the threats posed by trade deficits and unfair trade practices are addressed, corrected or mitigated.

Therefore, the Ministry of Industry and Trade believes that there is still room for discussion and negotiation between the two sides to reach a mutually beneficial result.

This morning, right after the US announced the imposition of tariffs, Minister of Industry and Trade Nguyen Hong Dien sent a diplomatic note requesting the US to postpone the decision to impose tariffs to take time to discuss and find a reasonable solution for both sides.

We are arranging a phone call between the two ministers, as well as at the technical level with our colleagues at the Office of the United States Trade Representative (USTR) as soon as possible.

Has the Ministry of Industry and Trade forecasted and prepared?

* So how does this tax rate affect the export target set in the coming time?

- In 2025, the Ministry of Industry and Trade sets an export growth target of about 12%, equivalent to about 450 billion USD. In case Vietnam and the US cannot find a positive solution, this tax will have a certain negative impact on the export growth target.

However, the Ministry of Industry and Trade has predicted this issue and prepared, proposed a specific action plan to the Government and recommended to businesses to take necessary steps.

It is forecasted that exports will face many difficulties in the near future, so close coordination between ministries, sectors and enterprises is needed to achieve the target. Therefore, enterprises need to take advantage of the existing strengths of 17 free trade agreements with over 60 countries and territories and 70 bilateral cooperation mechanisms.

Along with that, it is necessary to promote the diversification of export markets. Vietnam's exports to the US account for 30% of total export turnover.

This is both an advantage and a weakness of export activities. Vietnam still has many opportunities to exploit the remaining 87% of the world market, so the ministry will make efforts to open up export routes to other markets.

Specifically, the ministry will promote FTA negotiations with new markets in the Middle East, Latin America, Central Asia and other emerging markets. It will strengthen trade promotion and improve logistics infrastructure, and expand the Vietnamese trade office system abroad to support businesses.

Vietnam will also have to restructure its economy, diversify markets, diversify products, and diversify supply chains to ensure rapid and sustainable development.

The Ministry of Industry and Trade recommends that businesses need to diversify markets, effectively exploit key markets, traditional markets, as well as develop small markets and niche markets.

Improve product quality, meet technical, labor and environmental standards, increase competitiveness and reduce risks when applying trade defense measures.

Focus on controlling the origin of raw materials for production, ensuring compliance with the rules of origin in the FTA.

Strengthen trade defense capacity, update information and participate in relevant training courses. Actively update market information, regularly monitor and update information, promptly adjust appropriate business strategies.

The synchronous implementation of the above solutions will help Vietnamese enterprises increase their resilience to fluctuations in international trade and maintain sustainable export growth.

According to Tuoi Tre Newspaper

Source: https://baoquangtri.vn/bo-truong-bo-cong-thuong-co-cong-ham-de-nghi-my-tam-hoan-ap-thue-doi-ung-192730.htm