In a significant move to strengthen economic ties, Vietnam is set to negotiate a reciprocal trade agreement with the United States following a temporary postponement of substantial tariffs. Vietnamese Prime Minister Pham Minh Chinh disclosed the intentions in a recent statement as the country navigates its trade relations amid rising tension.
Seeking a Fair Trade Agreement
During a cabinet meeting on 7 April 2024, Prime Minister Chinh announced Vietnam’s plans to engage with US officials to discuss balanced trade terms. This comes after US President Donald Trump had planned to impose a hefty 46% tariff on Vietnam, a measure that was temporarily delayed.
- Vietnam’s economy recorded over US$123 billion in exports to the US last year, marking a significant trade surplus.
- The Vietnamese stock index has fallen nearly 14% since the announcement of the tariffs.
Responding to Economic Challenges
Despite a slight dip in growth—6.93% in the first quarter of 2024 compared to 7.55% in the previous quarter—Vietnam remains optimistic about achieving its target of at least 8% growth this year. The government is keen to maintain economic momentum despite external pressures, including looming tariffs.
To further enhance relations, Vietnam has committed to purchasing more American goods, especially in defence and security sectors. Prime Minister Chinh mentioned that Vietnam is actively reviewing several economic policies to adapt to the changing trade landscape, including monetary policy and non-tariff barriers.
Negotiating with the US
The proposed negotiations aim to create a more stable and beneficial trade environment for both nations. Vietnam’s Deputy Prime Minister Ho Duc Phoc highlighted the urgency of these discussions, stating that technical teams from both countries should commence dialogue promptly.
As the world observes these developments, the outcomes of the negotiations could redefine Myanmar’s trade dynamics and influence its economic policies moving forward.