Vietnam to begin negotiations with US on countervailing tariffs on May 7: PM

According to PM Chinh, since the beginning of the year, the global situation has evolved with highly complex and unpredictable developments.

In particular, the U.S.'s sudden announcement of a new, wide-ranging countervailing tariff policy with high rates has had a negative impact on global economic growth, posing serious threats to supply chains and the flow of international trade and investment.

Following resolutions and conclusions from the Party Central Committee, the National Assembly, and the directives of Party General Secretary To Lam, the government and the prime minister have focused on directing ministries, agencies, and localities to implement tasks and solutions in a comprehensive, determined, and effective manner.

This includes streamlining and reorganizing the government apparatus to ensure smooth operations; restructuring administrative units at all levels; and developing a two-tiered local government model.

The government has promoted economic growth with a target of eight percent or higher for this year.

In response to the U.S.'s new tariff policy, Vietnam has remained calm, proactive, and resilient, implementing a wide range of timely, flexible, and appropriate measures, which have achieved initial positive results, PM Chinh noted.

He affirmed that the government is closely overseeing the negotiating team and relevant ministries and agencies, who are monitoring the situation, urgently finalizing proposals, and preparing to negotiate with the U.S. with the spirit of 'harmonized benefits, shared risks.'

As a result, Vietnam's GDP growth in the first quarter of this year reached 6.93 percent, the highest for the period during 2020–25, with many localities recording double-digit growth.

All three economic sectors recorded positive growth. Infrastructure development is progressing in a synchronized and modern direction, with priority given to key projects.

Emphasis has been placed on developing high-quality human resources, especially in fundamental science, semiconductors, microchips, engineering, and critical technologies.

Social welfare policies, care for those with contributions to the revolution, and poverty reduction programs have been implemented effectively, thus improving the lives of the people.

The government has streamlined its apparatus to 14 ministries and three ministerial-level agencies, a reduction of eight ministries and ministerial-level agencies.

Multiple solutions to help Vietnam rank among world’s top 30 economies

Despite these achievements, the prime minister acknowledged that pressure on macroeconomic management remains high, especially in terms of interest rates, exchange rates, and inflation control.

Production and business activities continue to face many difficulties, particularly in enterprise development. Administrative procedures remain cumbersome, causing inconvenience for businesses and citizens.

The government leader stated that to achieve a growth target of eight percent or higher, a GDP of over US$500 billion, projected to rank 30th globally, up two places, and a GDP per capita of over $5,000 in 2025, all agencies and localities must continue to spend efforts to implement the set tasks and solutions.

They should closely monitor international and domestic developments, make timely forecasts, and respond with flexible policies, especially concerning the new U.S. tariff policy.

Priority should be given to promoting growth while maintaining macroeconomic stability, controlling inflation, and ensuring major economic balances.

The government will effectively implement resolutions of the Politburo, accelerate the restructuring of the economy, and establish a new growth model driven by science, technology, innovation, and digital transformation.

By 2025, the country aims to complete over 3,000 kilometers of expressways and more than 1,000 kilometers of coastal roads.

The government will continue to prioritize the development of high-quality human resources to meet market needs, especially in artificial intelligence, data science, semiconductors, high-speed railway construction and operation, and nuclear power.

Vietnam and the U.S. agreed to initiate negotiations on a reciprocal trade agreement, including tariff arrangements, during a meeting between Vietnamese Deputy Prime Minister Ho Duc Phoc, serving as a special envoy of Party General Secretary To Lam, and U.S. Trade Representative Jamieson Greer in Washington, D.C. last month.

The meeting followed the U.S. administration's April 3 announcement of a significant 46-percent tariff on imports from Vietnam, originally effective April 9, placing the nation among those facing the steepest duties.

However, hours before the meeting, U.S. President Donald Trump decided to postpone the enforcement of the new rates on over 75 countries, including Vietnam, as these nations sought trade talks with the U.S. and had not retaliated in meaningful ways.

Party General Secretary To Lam held phone talks with President Trump on April 4, indicating Vietnam's readiness to work with the U.S. to reduce tariffs on American goods to zero percent, to boost imports of U.S. goods, and to facilitate U.S. investments in Vietnam.