Vietnam Intensifies Negotiations with US to Ease High Tariffs

HANOI: On Friday, Vietnam and the United States conducted their inaugural direct ministerial-level talks amid the looming 46 per cent tariff on imports from the Southeast Asian country, potentially affecting its growth considerably. The Vietnamese trade ministry announced in a statement on Saturday that the gathering, held in Jeju, South Korea, after the 31st APEC Ministerial Meeting on Trade, represented the dedication of both countries to promoting a stable economic, trade, and investment partnership.

The discussions come after a phone conversation last month between Vietnamese trade minister Nguyen Hong Dien and U.S. Trade Representative Jamieson Greer that officially initiated negotiations. The trade ministry's statement noted, "USTR Greer concurred with Vietnam's existing approach and proposal." "The United States is optimistic that through collaborative efforts, the upcoming technical-level negotiations will produce favourable outcomes."

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The U.S. has delayed the enforcement of the 46 per cent tariff on Vietnam until July. If implemented, the tax could hinder growth in Vietnam, which relies significantly on sales to the United States, its top export market, and considerable foreign investments in export manufacturing. Vietnam ranks fourth in trade surplus among U.S. trading partners, totalling $123.5 billion last year. Hanoi has recently taken various actions to reduce that trade surplus, such as lowering tariffs on many products intended for the U.S. and amplifying its initiatives to restrict the transfer of Chinese goods to the U.S. through its territory.