New step forward in US-Vietnam reciprocal tax

Some goods are likely to have tax reductions.

Businesses are expecting tariffs on goods sold to the US market to be reduced from the current 20%. Earlier in September, US President Donald Trump signed an executive order exempting import tariffs on 45 groups of goods. In the executive order, the list of tax-exempt goods includes products that cannot be grown, mined or produced naturally in the US, as well as goods that the US does not produce enough to meet domestic demand. In addition, items such as natural graphite, neodymium magnets, and LED lights are also included in the tax-exempt list.

Specialty products such as fruits are likely to be considered for reciprocal tax reduction. In the photo: Preliminary processing of green-skinned pomelos for export to the US at Chanh Thu Fruit Import-Export Company ( Vinh Long )

PHOTO: DAO NGOC THACH

According to Mr. Do Ha Nam , Chairman of the Vietnam Pepper Association, Vice Chairman of the Vietnam Coffee - Cocoa Association, Chairman of the Board of Directors of Intimex Group, the import tax rate of Vietnam's coffee to the US was previously 0%. But after the US imposed a 20% reciprocal tax on all goods from Vietnam, coffee was also subject to this tax. With the latest joint statement, Vietnam's coffee and pepper products entering the US can return to the previous 0% tax rate. In fact, for agricultural products in general, coffee and pepper in particular, competitiveness does not come from quality but most importantly from tax rates. Vietnam is in second place after Brazil in coffee exports, so in general, the market is not too difficult. However, with a large and diverse market like the US, even though the export proportion is not large, most businesses want to be present or expand in this market. "For Intimex Group, although the US only accounts for a small part of the group's total export value of nearly 1.5 billion USD in 2024, the group also determines that this is still a strategic market," said Mr. Do Ha Nam.

Agricultural and seafood products will be given first priority.

Among Vietnam's key export products, agricultural products and seafood are likely to be the first priority sectors to be considered for preferential treatment within the framework of "similar partners". Because these are the sectors that the US has long promoted market opening in the Asian region, including Vietnam. Meanwhile, when Vietnam commits to reducing import taxes and expanding the market for US agricultural products and this group of products has clear origin, transparent traceability and high level of raw material autonomy, there are favorable conditions to be considered for a 0% tax rate. Besides agriculture , another strategic sector expected to benefit is high technology, especially in the semiconductor industry and information technology services, artificial intelligence (AI), big data (Big Data). Vietnam is showing its goodwill to open up and cooperate deeply with leading US technology enterprises, not only in investment but also in technology transfer and training of high-quality human resources. If Vietnam enjoys a tax rate of 20% to 0% for high-tech products and services, it will be a special boost, helping us participate more deeply in the global production and supply chain in the fields of semiconductors, technology and digitalization.

Dr. Nguyen Quoc Viet, University of Economics, Vietnam National University, Hanoi

Mr. Dang Phuc Nguyen, General Secretary of the Vietnam Fruit and Vegetable Association, also said that it is likely that the US will consider reducing taxes on products that are 100% produced and processed in Vietnam, especially agricultural and aquatic products grown and raised domestically. For example, fruits such as coconut, durian... are considered specialties of Vietnam that the US and even neighboring countries do not have. Therefore, Mr. Nguyen has high expectations that Vietnamese agricultural and aquatic products, including vegetables and fruits, will have their taxes reduced this time. "The best tax reduction I expect is to be down to 10% like some of the US's allies in the South American region. Reducing the tax to 0% is more difficult. In the first 9 months of this year, Vietnam's fruit and vegetable exports to the US reached 407 million USD, up 60% over the same period last year. Although the turnover increased, this rate is still very low compared to the demand of the US market. Every year, the US imports 45-50 billion USD of fruit and vegetables, of which Mexico accounts for about 20 billion USD. Therefore, if the tax is reduced, Vietnam's fruit and vegetable exports to this market will continue to increase but it will not be able to reach a large turnover immediately. Because Vietnam's fruit and vegetable products do not have advanced preservation technology, plus the logistics costs are too expensive due to the long distance, it is difficult to compete with the US's neighboring countries and can only sell a few specialties," Mr. Nguyen added.

Optimistic signals, expectations for exports

According to Mr. Do Ha Nam, Vietnam is one of the largest producers and exporters of Robusta coffee in the world, so the production cost of this type of coffee is often lower than that of Arabica coffee and coffee from some other countries. This gives Vietnamese coffee a great competitive advantage in price when entering the US market, especially in the segment of instant coffee, blended coffee and products requiring large quantities at reasonable costs. The US is a large coffee consuming market in the world and Vietnamese coffee has affirmed its position in this market. Negotiating specific items on a 0% tariff, coffee is expected to have a better tax rate although everything is not yet known. "We expect the upcoming trade agreement to be positive and hope that Vietnamese agricultural products, a group of products that the US does not produce, will be given more favorable conditions when entering the US," Mr. Nam emphasized.

Seafood products are expected to be given priority by the US to be subject to a 0% tax rate. In the photo: Processing tra fish for export at Nam Viet Company (An Giang)

PHOTO: CHI NHAN

Garment enterprises also expect the tax rate to be reduced compared to the current level. Mr. Pham Xuan Hong, Chairman of the Ho Chi Minh City Textile and Fashion Association, analyzed that the US is a country that does not produce textiles and garments but mainly buys from abroad. This is a traditional group of goods and does not harm production in the US. If the tax is reduced, not only will Vietnamese enterprises save costs but American consumers will also be able to buy goods at better prices. The important thing is that Vietnam needs to control the problem of goods with fraudulent origin to avoid being investigated or having taxes raised again.

Sharing the same view, Dr. Ho Quoc Luc, Chairman of the Board of Directors of Sao Ta Food Joint Stock Company, said that Vietnam's agricultural and fishery products in general are likely to be considered for reciprocal tax reduction in the US. Specifically, the US only has marine shrimp and farmed crayfish, while Vietnam only has freshwater shrimp such as tiger prawns, whiteleg shrimp, etc. Shrimp are completely farmed in Vietnam and only some feed is imported but not significantly so it does not affect the US shrimp industry. If reciprocal tax is reduced, the Vietnamese shrimp industry will maintain its market share in the US. Compared to some major competitors in this industry such as India, which is subject to higher taxes, Ecuador does not have strengths in processed products, medium and high-end segments, so Vietnamese enterprises can fully expect to increase their market share in this market. "This Vietnam-US joint statement is an extremely positive signal for businesses exporting agricultural and fishery products. This will help us maintain the large US market and also have the opportunity to promote increased exports in the coming time," Mr. Luc commented.

Vietnam shows goodwill and level of market opening

Dr. Nguyen Quoc Viet, public policy expert , University of Economics, Vietnam National University, Hanoi, commented: The information in this joint statement is not new, but only formalizes the trade agreement on fair reciprocal taxes that was previously agreed upon. However, clearly publicizing the 20% reciprocal tax rate helps Vietnamese enterprises "no longer wait for the possibility of tax reduction", thereby being more proactive in planning export strategies. From here, exporting enterprises can focus on improving quality, increasing domestic value, instead of waiting for tariff incentives. Affirming specific tax rates also helps industries be more proactive in market diversification strategies and allocating export risks in the period of 2026 and the following years. The US's consideration of putting some groups of Vietnamese goods under the 0% tax rate is also part of the US's special mechanism on the "similar partner" status. This is a policy to promote trade cooperation with countries that have similar development orientations and are willing to open their markets. However, to be considered for this status, Vietnam needs to demonstrate goodwill and a real level of market opening, especially through reducing or eliminating import taxes on some US goods.

Agricultural products such as coffee are likely to be considered for reciprocal tariff reduction.

PHOTO: HOANG NGUYEN

"When the US assesses that Vietnam meets the criteria for fairer and freer trade treatment, some of Vietnam's export groups can be included in the 0% tax rate, but that will have to go through a thorough assessment and evaluation process. Vietnam needs to first demonstrate its goodwill in opening the market. When Vietnam proves the level of real trade liberalization, the US will consider the products that can enjoy this status," said Dr. Nguyen Quoc Viet.

Vietnam imported goods from the US reaching more than 13.6 billion USD

According to the Customs Department, in the first 9 months of 2025, Vietnam imported more than 13.6 billion USD worth of goods from the US, an increase of more than 23.6% over the same period, equivalent to an increase of 2.5 billion USD. In particular, the most prominent products are computers, electronic products and components, accounting for more than 4 billion USD, an increase of about 24% over the same period last year. This is the largest group of imported products from this market, reflecting the wave of technology upgrading, component replacement and capacity increase in the electronics, telecommunications, medical equipment industries, etc. The second largest import group is machinery, equipment, tools, and other spare parts, reaching 915.3 million USD, an increase of 14.6%; raw plastic materials reached 854.9 million USD, an increase of about 46%. Notably, after Vietnam signed a memorandum of understanding with the US, the import output of US agricultural products increased sharply. Specifically, in 9 months, Vietnam spent 1.1 billion USD to import 650,000 tons of cotton from the US, an increase of 84.2% over the same period last year; becoming Vietnam's largest cotton supplier. Soybean imports increased 2.5 times compared to last year; vegetables and fruits increased 35.8%...

According to Professor Vo Xuan Vinh, Director of the Institute of Business Research (Ho Chi Minh City University of Economics), compared to the reciprocal tax that the US imposes on many countries, Vietnam is not at a disadvantage and the tax rate is equivalent to that of goods in the region. For now, this is a good sign, showing that US President Donald Trump highly appreciates Vietnam's goodwill in trade relations, especially Vietnam's efforts to increase purchases of goods from the US. Specifically, we have signed an agreement to buy aircraft worth billions of USD; Vietnamese enterprises also have an agreement to buy agricultural products with a total value of nearly 3 billion USD. The joint announcement as well as the reciprocal tax agreement to be signed in the near future focus on factors that are beneficial to US consumers. Accordingly, agricultural products that the US does not have or Vietnamese agricultural products that can replace certain markets in the US or minerals will be an advantage.

"Of course, the review will be based on a number of criteria, but initially it is generally a good sign. Basically, in the coming time, Vietnam will have many opportunities to increase its exports to the US," said Prof. Dr. Vo Xuan Vinh. However, he noted that the joint statement affirmed that the US will continue to maintain a 20% reciprocal tax rate on goods originating from Vietnam and consider applying a 0% tax rate to some products; at the same time, the two sides committed to coordinate in handling non-tariff barriers affecting bilateral trade in related fields, including intellectual property issues. Thus, the issue of warnings about Vietnam being used as a transit point for goods to the US has not been mentioned or will be discussed further in the coming time.

"The Ministry of Industry and Trade should pay attention to this issue in reviewing and discussing to expand the space and export groups that enjoy good reciprocal taxes. Enterprises need to improve their management capacity, invest in science and technology, innovate to have high technology, produce at low costs. In particular, they must create their own products to be globally competitive...", Mr. Vinh recommended.

Thanhnien.vn

Source: https://thanhnien.vn/buoc-tien-moi-trong-thue-doi-ung-my-viet-185251027235650744.htm