Find ways to alleviate the pressure regarding the possibility of the United States imposing retaliatory tariffs.

(Chinhphu.vn) - On the morning of April 6th, Prime Minister Pham Minh Chinh chaired the regular Government meeting for March 2025 and the online Government conference with localities, discussing many important issues. After hearing proposals from localities, the Ministers of relevant ministries and sectors provided immediate answers at the meeting.

Governor of the State Bank of Vietnam Nguyen Thi Hong - Photo: VGP/NB

Regarding the US announcement of retaliatory tariffs, the Governor of the State Bank of Vietnam, Nguyen Thi Hong, observed: After the US announced the retaliatory tariffs, the global and domestic financial and monetary markets will experience complex fluctuations, putting pressure on monetary policy management, exchange rates, interest rates, and the achievement of our 8% economic growth target.

Currently, the domestic economy is performing positively, with improved domestic demand for goods and services, showing a 6.2% increase in total retail sales of goods and services, higher than the same period last year. Total social investment is also growing well. Although exports and disbursed FDI are growing at a slower rate compared to the same period last year, the overall result shows that GDP in the first quarter increased by 6.93%, the highest first-quarter growth rate since 2020.

"However, compared to the target of 8% or more growth, we still have a lot of work to do," the Governor of the State Bank of Vietnam assessed.

Regarding monetary policy, exchange rates, and foreign exchange management, from the beginning of the year, the State Bank of Vietnam set a credit growth target of 16% and notified all credit institutions to proactively manage it. By the end of the first quarter, credit growth had increased by 3.93%, 2.5 times higher than the 1.42% increase in the same period last year. This shows that credit has contributed to growth and total social investment in the recent period. The State Bank of Vietnam will continue to monitor the situation, and if inflation remains under control at a low level, it may flexibly adjust credit growth to promote economic growth.

Regarding interest rates, banks have taken steps to reduce deposit rates. The new deposit interest rate level remains almost unchanged, increasing by only about 0.08%, while the lending interest rate level continues to decrease by about 0.4% compared to the end of the previous year. This is a noteworthy reduction reflecting the efforts of the banking system.

Regarding exchange rates and the foreign exchange market, the State Bank of Vietnam has carefully studied the tax order and found that President Trump based the tariffs on certain countries on their trade surpluses, and the currency issue was not clearly addressed. Immediately after President Trump's announcement, on the first day, the exchange rate increased by 0.6%, a significant amount. The State Bank of Vietnam will closely monitor developments to manage tools and solutions at the appropriate time and with the right dosage, balancing the goals of exchange rate stability and interest rate reduction.

Minister of Industry and Trade Nguyen Hong Dien stated that, in order to achieve the set economic growth targets, the Ministry of Industry and Trade must find ways to alleviate the pressure from the potential increase in retaliatory tariffs by the United States. - Photo: VGP/NB

Ministry of Industry and Trade: Seeking all possible ways to alleviate pressure regarding the potential imposition of retaliatory tariffs by the United States.

At the meeting, Minister of Industry and Trade Nguyen Hong Dien stated that, in order to achieve the set economic growth targets, the industry and trade sector must find ways to alleviate the pressure from the potential increase in retaliatory tariffs by the United States, and at the same time, must prepare thorough plans to proactively and appropriately respond to all situations.

"If the United States prolongs the negotiations, we must simultaneously do two things: First, negotiate a bilateral free trade agreement to pave the way for bilateral trade cooperation. Second, reach an agreement on combating origin fraud to immediately block third-country goods from being exported to the United States via Vietnam," the Minister analyzed.

Along with this solution, we continue to promote traditional growth drivers, especially through public investment and mobilizing social investment resources. At the same time, developing the domestic economy, which is a very important driving force, will create breakthroughs in new growth drivers through digital transformation and the development of the private sector to mobilize resources for the economy.

The second solution is to continue promoting comprehensive institutional reforms, administrative reforms, and reforms to the investment and business environment. We should focus on finalizing draft laws through the "one law amends many laws" process before submitting them to the National Assembly, especially those related to science and technology, innovation, and new fields, to create new impetus for development.

At the same time, it is necessary to concretize the Politburo's policy on international economic integration in the new situation, so that localities, ministries, businesses, and industry associations can effectively exploit and promote the Free Trade Agreements (FTAs) that we have signed. Continue to explore and open new markets to boost production and contribute to strengthening the domestic production base.

Regarding localities and ministries, the Ministry of Industry and Trade requests that ministries coordinate with the Ministry of Industry and Trade to vigorously implement the tasks in the Project on building balanced and harmonious trade relations with major partners, including the United States, especially the review and elimination of non-tariff barriers for businesses and goods from partners, including the United States, entering Vietnam.

The Ministry of Industry and Trade also urged localities to promptly select investors with sufficient capacity to implement projects within national sectoral plans such as the National Power Development Plan (Power Plan VIII), the Energy Plan, and the Mineral Plan. This is to create growth potential for both localities and the country, while also proactively securing raw material supplies for production. In the current context, we need to proactively secure supply to avoid being drawn into trade wars regarding the origin of goods.

Local authorities, in coordination with ministries and agencies, are implementing Decision No. 435/QD-TTg of the Prime Minister: Assigning Government members to preside over and supervise working with localities on the situation of production and business, public investment, infrastructure construction, and import and export in their areas to promptly resolve difficulties and obstacles and prevent bottlenecks. Local authorities need to direct and encourage trade promotion programs, stimulate consumer demand, and develop tourism and services, as these are areas with significant potential. In particular, local authorities are requested to focus on supporting the implementation of projects in the Power Development Plan VIII.

Recently, several localities such as Quang Ninh, Hai Phong, and Dak Nong have proposed additions to the Power Development Plan VIII. Minister Nguyen Hong Dien affirmed that the Ministry of Industry and Trade has complied with the regulations of the Planning Law, seriously implemented the Prime Minister's directives, and avoided repeating past mistakes in previous plan adjustments. Therefore, the Ministry has worked with these localities many times. Currently, the total system capacity has been determined to be approximately 236,000 MW, three times the current capacity, ensuring balance across regions, a balance between power generation and transmission grids, and electricity prices that are affordable until 2030 and with a vision to 2050.

"Local authorities have requested the inclusion of the project in the plan. In principle, the Ministry of Industry and Trade appreciates this, but it must be done in accordance with regulations. This plan aims at three objectives: meeting domestic demand; meeting the demand for direct power purchase agreements (DPPA); and meeting the demand for electricity exports."

Regarding Hai Phong, the Ministry of Industry and Trade has incorporated and supplemented the proposal for replacement, but has not yet selected an investor.

Regarding Quang Ninh, the Ministry of Industry and Trade acknowledges the proposal for a second gas-fired power plant project and includes it in the contingency list. If Quang Ninh selects an investor and ensures timely completion, it may be considered for inclusion in the planning. Currently, although an investor has been selected for the Quang Ninh 1 thermal power plant, implementation is very slow, and it is unlikely to be completed before 2031. Adding another project would likely result in a suspended plan.

Regarding Dak Nong province, in compliance with the Prime Minister's directive, the Ministry of Industry and Trade will consider the project on the condition that the locality selects a capable investor and implements it under a direct power purchase agreement (DPPA). At that point, the Ministry of Industry and Trade will be ready to include the project in the planning," the Minister informed.

Minister of Construction Tran Hong Minh

Minister of Construction Tran Hong Minh stated that, based on the compiled proposals from localities such as Yen Bai and Dak Lak regarding investment in expressways and ring roads, the Ministry of Construction has included these proposals in the medium-term public investment plan for the period 2026-2030, with the goal of completing 5,000km of expressways nationwide.

Regarding Dak Nong's proposal to upgrade National Highway 28 from Binh Thuan to Dak Nong, according to the Road Traffic Law and Government Decree No. 165/2024/ND-CP: detailing and guiding the implementation of some articles of the Road Law and Article 77 of the Law on Road Traffic Order and Safety, the entire national highway has been decentralized to local management. Therefore, it is suggested that Dak Nong province proactively balance its funding sources to carry out the upgrade of this road.

Regarding the planning of the expressway from Dak Nong to Binh Thuan, the Ministry of Construction has only received a proposal in principle and will coordinate with the local authorities to review and adjust the planning for the period 2021-2030 with a vision to 2050. To expedite the construction of this expressway, the Ministry of Construction requests that Dak Nong province coordinate with Binh Thuan province to proactively review and update the provincial planning and submit a report to the competent authorities for implementation.

Phan Trang

Source: https://baochinhphu.vn/tim-moi-cach-giai-toa-ap-luc-ve-viec-hoa-ky-co-the-ap-thue-doi-ung-102250406145145019.htm