At a government press conference this afternoon, a representative from the Ministry of Finance urged restraint in responding to the US’s new countervailing tariff measures. He emphasized that the Vietnamese government’s efforts would help restore investor confidence.

Addressing the potential impact of the recently announced U.S. tariffs, Deputy Minister of Finance Do Thanh Trung said during the March 2025 regular government press briefing that international organizations and financial institutions have warned of increasing risks of a global economic slowdown, possibly leading to a recession.

Accordingly, many institutions have revised down global growth forecasts - an outcome that will inevitably affect Vietnam.

“The US tax policy applies not only to Vietnam but to all countries. This is the main factor influencing business sentiment, the investment climate, and future outlook,” Trung explained. “Vietnam’s investment environment will also be affected to some extent.”

Trung noted that investor reaction on Vietnam’s stock market was “somewhat excessive,” even though the government responded quickly.

“In just two days, the stock market lost 100 points, but I believe that with the government’s efforts, investors will regain their confidence,” he said.

Agreeing with this view, Deputy Minister of Industry and Trade Truong Thanh Hoai stated that the 46% retaliatory tariff - expected to take effect from April 9 - will have significant, multifaceted, and negative effects on Vietnam’s exports and economic growth, particularly on the manufacturing sector, FDI inflows, domestic investment, services, and employment.

“Key export products such as computers, electronic components, footwear, and textiles risk seeing declines in export revenue,” he said.

The tariff hike will make Vietnamese goods more expensive in the U.S. market, reducing their competitiveness compared to products from other countries.

Meanwhile, weaker consumer purchasing power in the U.S. could prompt American businesses to reconsider or even terminate existing contracts with Vietnamese firms, making it harder to secure new deals.

The Ministry of Industry and Trade has actively engaged with U.S. counterparts at all levels through various channels to clarify Vietnam’s stance since the announcement of the tariff decision.

On April 3, Minister of Industry and Trade Nguyen Hong Dien sent an urgent request to the U.S. Trade Representative to postpone the new tariff implementation so both sides could negotiate a mutually beneficial solution.

He also requested that a high-level phone call be arranged between General Secretary To Lam and U.S. President Donald Trump on April 4.

During that phone call, both sides expressed a desire to strengthen bilateral cooperation. Vietnam signaled its willingness to reduce its own import tariffs on U.S. goods to 0%, and asked the U.S. to apply a similar policy in return.

Prior to that, on March 30, the Vietnamese government issued Decree 73, reducing several preferential import tariff rates, but the move did not fully meet U.S. conditions.

Going forward, the Ministry of Industry and Trade will maintain close coordination with relevant U.S. agencies to resolve outstanding trade issues.

Meanwhile, Vietnamese enterprises must improve their adaptability, focus on developing the manufacturing and supporting industries, and work to increase domestic value-added.

The Ministry of Industry and Trade also warned that exports will face major challenges in the near future.

Therefore, ministries, local authorities, and businesses must coordinate closely, continuously update policy and trade information, and promptly adjust business strategies to meet Vietnam’s 2025 export targets.

The Vinh - Tran Thuong