Vietnam commits to working with U.S. to achieve trade balance

Deputy Minister of Finance Nguyen Duc Chi was quoted by the Government News on April 4 as stating that  Vietnam commits to working with U.S. partners to achieve a trade balance that benefits both Vietnamese and U.S. consumers.

The deputy minister made the statement in response to the U.S. recent decision to impose a 46 per cent reciprocal tariff on imports from Vietnam.

Vietnam has been proactively reviewing and adjusting its imports to increase trade turnover and work toward balancing trade with key partners, including the U.S., the deputy minister said, adding that Vietnam hopes the U.S. would consider ongoing discussions and make appropriate adjustments.

Meanwhile, Mr.Truong Ba Tuan, Deputy Head of the Tax Policy Department under the Ministry of Finance, as quoted by the Government News, reported that the US’s  new tariff rate is substantially higher than the current rate and will negatively  impacts Vietnam's production—particularly in key export sectors such as electronic components, agriculture, garments and textiles, and footwear.

The Ministry of Finance has recently conducted a comprehensive review of import tariffs.

According to the latest report from the Office of the U.S. Trade Representative (USTR), Vietnam's average tariff rate stands at just 9.4 per cent. Most U.S. exports to Vietnam are subject to an average tariff rate of around 15 per cent, with only a few exceptions.

These levels are still significantly below the newly imposed 46 per cent tariff.

"It is essential to clarify the factors beyond tariffs that led the U.S. to impose this 46 per cent reciprocal tariff in order to develop an appropriate response," Mr. Tuan said.

Earlier, the Government of Vietnam promulgated Decree No. 73, which reduces import tariffs on 16 product groups, effective from March 31, to help improve market access and demonstrate a commitment to fair trade practices.