Vietnam PM requests trade balance with major partners

Prime Minister Pham Minh Chinh has assigned cabinet members to ouline plans for balancing Vietnam's trade with major partners, amid external trade tensions.

The country must expand trade and investment cooperation with other countries to lift its economic growth, focusing more on major partners such as China, the U.S., Europe, Japan, and South Korea, he told a government meeting on Saturday

Chinh also tasked ministries and local administrations to make the most of signed FTAs and find new agreements to diversify markets and supply chains.

He requested taxes to be reviewed and adjusted in accordance with the interests of all parties, especially major partners.

The Prime Minister also ordered relevant authorities to increase inspection and control of the origin of goods, preventing foreign goods from entering Vietnam through smuggling and then being exported to other countries, affecting Vietnam's reputation.

Management agencies need to sort out difficulties for projects of the country's partners and create conditions for them to expand investment, trade, and supply chains in Vietnam.

"Legitimate proposals of enterprises and partners related to issues like work permits and visas must be addressed," the cabinet leader stated.

Vietnam ranked 23rd in terms of exports and 22nd in imports globally, with an average growth rate of over 13% since 2007. Trade revenue hit a record of over $800 billion last year, half of which came from imports.

The National Assembly, the country's legislature, has set a GDP growth target of at least 8% for 2025, with an aim to create momentum for double-digit growth in the coming years.

The country seeks to develop rapidly but sustainably, based on science, technology and digital transformation, ensuring progress, fairness, social security and environmental protection.

Chinh also requested ministries and localities to focus on three strategic breakthroughs related to institutions, infrastructure, and human resource training.

"Institutions must be open, infrastructure must be smooth, governance and human resources must be smart," he stressed.

The Prime Minister reiterated a number of tasks such as renewing old growth drivers and exploiting new growth drivers based on science, technology and innovation.

He said efforts must focus on public investment disbursement and key national projects like high-speed railway projects, nuclear power plants, financial centers, and free trade zones.

The United States was Vietnam's biggest export market in the first two months of the year, with an export revenue of $19.6 billion, up 16.5% year-on-year; while China was the biggest import source with $23.3 billion, up 20.7%.

China was the biggest trade partner with a turnover of $31.2 billion, followed by the U.S. with $22.2 billion, the ASEAN with $13.5 billion, South Korea with $13.4 billion, the EU with $11.2 billion, and Japan with $7.9 billion.

Vietnam's trade surplus with the U.S. in the two months was $17 billion.

Vietnamese Minister of Industry and Trade Nguyen Hong Dien is expected to hold discussions with U.S. Trade Representative Jamieson Greer on economic and trade issues of the two countries' mutual interest next week. Deputy Minister Nguyen Sinh Nhat Tan disclosed the information at the government’s monthly press meeting last Wednesday.

He emphasized that Vietnam and the U.S. are complementary economies. The trade imbalance between the two countries results from the complementary nature of their economies and the structure of their exports, rather than other reasons.

Vietnamese goods exported to the U.S. mainly compete with third countries, not directly with American companies in the U.S. market. This creates an opportunity for American consumers to access cheaper Vietnamese products, Tan added.

"Vietnam is an open economy and in the process of international integration. The country follows a free trade policy; the tariff differential for U.S. goods is not significant and the tariffs could continue decreasing in the future, as Vietnam aims to reduce the MFN (Most Favored Nation) tariffs for many products," he said.

According to Tan, some U.S. products with a high competitive advantage such as cars, agricultural products, liquefied gas, and ethanol, will benefit from this policy. This will also generate positive import flows from the U.S., contributing to improving the trade balance.