Vietnam vows to tackle US non-tariff concerns as it seeks 45-day delay of Trump’s levy
These include Chinese transhipment through Vietnam and intellectual property theft
[HO CHI MINH CITY] Vietnam’s Prime Minister Pham Minh Chinh has directed government ministries to resolve “thoroughly and effectively” the concerns of the US via various measures, including the strict oversight of goods origins and enhanced intellectual property enforcement to curb rebadged products.
Chinh chaired a meeting with ministries and sectors on Monday (Apr 7) to discuss the development of balanced and sustainable trade with the US.
Based on a report posted on the government’s portal about the meeting, Chinh reiterated Vietnam’s request for a postponement of the US reciprocal tariff on its goods by at least 45 days to facilitate negotiation and preparation for a “status transition”.
This comes after Vietnam’s offer to bring the import tariff rate to 0 per cent for US imports and seek the same approach from the other side as both countries hold talks to reach a bilateral agreement.
However, White House trade adviser Peter Navarro said on Monday that such an offer to eliminate tariffs on US imports “means nothing” because “it’s the non-tariff cheating that matters”.
Speaking on CNBC’s Squawk Box programme, he cited issues such as Chinese goods transhipped through Vietnam, intellectual property theft and a value-added tax.
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The 46 per cent reciprocal levy on Vietnamese goods is one of the highest tariffs the US imposed on its trading partners. The move threatens to dampen Vietnam’s foreign investment momentum and supply-chain clout.
Prior to the Apr 2 tariff blow, Vietnam made a number of pre-emptive bilateral trade concessions such as cuts to tariffs on US goods, including liquefied natural gas, automobiles and ethanol.
On Monday, Chinh underlined the continued procurement of US products that are strong and in demand by Vietnam, including items related to security and defence, as well as early delivery of aircraft in commercial deals.
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Last month, Vietnam allowed SpaceX to launch its Starlink satellite Internet service in the country on a trial period of five years with no limit on foreign ownership of the project. This comes despite Vietnam’s earlier concerns that such a service presented security risks such as data leaks and illegal collection of information.
Vietnamese budget airline Vietjet has a US$25 billion order for 200 Boeing jets with a delivery schedule from 2024. This year, Vietnam has also been pushing for frenzied dealmaking worth a total of US$90.3 billion with US firms – at least US$4.2 billion of which has been sealed.
Hanoi’s trade surplus with Washington ballooned to US$123.5 billion in 2024, the third-highest after China and Mexico, triggering a hefty reciprocal tariff set to be charged on Vietnamese imports to the US from Wednesday.
Vietnam’s stock market extended its decline on Tuesday, the first trading day of the week after a public holiday on Monday. The benchmark VN Index fell 6.4 per cent to 1,132.79 points at close – one of its sharpest falls in history.
The dong also dropped 0.85 per cent to an all-time low of 26,006 per US dollar, prices from banks compiled by Bloomberg indicated.
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