‘US is Vietnam’s largest export market, but there are other buyers’: PM

Speaking at a government meeting Sunday about the import tariffs U.S. President Donald trump is set to slap on Vietnam and all trading partners, he called for diversifying export markets.

Prime Minister Pham Minh Chinh speaks at a government meeting on April 6, 2025. Photo by Vietnam Government Portal

"Export markets need to be restructured, and the quality of goods must be enhanced to penetrate other potential markets such as the Middle East, Eastern Europe, Central Asia, Latin America, India, and ASEAN."

This is also an opportunity to restructure the economy into a more sustainable one by relying on science and technology and innovation, he said.

Vietnam is set to face among the highest tariff rates, of 46%, which are set to come into effect April 9.

Minister of Finance Nguyen Van Thang warned of significant economic challenges ahead as growth drivers are under strain, and macroeconomic stability faces growing risks.

The 46% tariffs could have a broad impact on the economy as declining exports to the U.S would hurt manufacturing, foreign direct investment, private investment, domestic consumption, and employment, he said. "This is immense pressure to achieve the government’s growth target."

Vietnam aims for at least 8% growth in 2025, a target the government has refused to adjust despite tariff and trade competition pressures.

The Ministry of Finance estimates GDP growth must be 8.3% in the last nine months to achieve the goal after the economy expanded by 6.9% in the first quarter.

It urged stronger bilateral talks with the U.S. to negotiate a fair tariff rate that factors in mutual interests. It also called for boosting public investment, foreign direct investment and growing the domestic market.

Chinh waned that the U.S.’s new tariffs and rising trade tensions could fracture global trade and supply chains, with varying responses by nations and slumping stock markets affecting worldwide growth.

He highlighted Vietnam’s proactive stance: "Since the beginning of the year Vietnam has taken all possible measures."

Party and government leaders have engaged the U.S. through political and diplomatic channels.

Domestically, measures include exploring import tax cuts, boosting purchases, and easing conditions for foreign firms, including American ones, with legitimate U.S. demands will address based on "harmonized benefits and shared risks."

After the U.S. unveiled its tariff policy, the cabinet met on April 3 to brief the Politburo and devise responses, prioritizing U.S. talks to delay tariffs until detailed negotiations can be held.

On April 5 the cabinet met to act on the Politburo’s decisions and the call between General Secretary To Lam and Trump.

"The measures are very proactive but also maintain composure and resilience in facing difficulties and external shocks," Chinh said, urging government bodies to come up with creative, proactive, flexible, and effective solutions.

The approach and handling of issues are comprehensive, and include both trade and non-trade measures to safeguard national interests, he said.

Vietnam’s 6.93% growth in the first quarter, a five-year high, was a "positive signal", though there are persistent challenges like exchange rate and interest rate pressures, slow recovery of demand, land and real estate policy gaps, and tardy public spending.

He sought measures to achieve 8% GDP growth or higher, eliminate institutional barriers, cut red tape, reduce compliance burdens, and drive public investment and growth engines.