Vietnam and the United States have officially begun talks over threatened 46% US tariffs on Vietnamese imports, as the country races to take advantage of a 90-day reprieve from the levies.
A phone call between Trade Minister Nguyen Hong Dien and US Trade Representative Jamieson Greer set out the “principles, scope and roadmap of negotiations”, according to a post on the Vietnamese ministry’s website.
Dien affirmed Vietnam’s readiness to tackle Washington’s concerns based on “mutual interests”, the ministry said.
Pham Luu Hung, chief economist at SSI Securities, said it was “important to remain patient, as a swift resolution should not be anticipated”.
Vietnam, which last year had the world’s third-largest trade surplus with the US after China and Mexico, has repeatedly vowed to purchase more American goods such as liquefied natural gas and aircraft, while offering to remove all tariffs on US imports.
It has also taken steps to target fraud in reporting the origin of goods, as one of the Trump administration’s key concerns is the issue of Chinese goods being shipped via Vietnam to sidestep tariffs.
Vietnam Airlines and Vietcombank on Thursday announced the signing of a provisional deal to finance the purchase of 50 aircraft, which could pave the way for the national carrier to make good on its 2023 commitment to purchase 50 Boeing 737 Max aircraft.
Vietnam could also be preparing to purchase Lockheed F-16 fighter jets as part of a trade deal as it looks to reduce the $123.5-billion trade gap, according to Bloomberg Intelligence analysts Eric Zhu and George Ferguson.
“Vietnam already showed interest in the fighter aircraft under the Biden administration but didn’t proceed due to geopolitical sensitivity with China and Russia,” they wrote in an April 15 report
The aircraft would be purchased to replace its aged fleet of around 40 Russian-made Sukhoi SU-22 aircraft.
Prime Minister Pham Minh Chinh reiterated on Tuesday that the government is working to resolve issues of concern to the US, especially regarding origin of goods, and taking steps to combat smuggling, trade fraud and counterfeit items.
But Hanoi also needs to address the potential impact of tariffs on the domestic economy. While the Trump administration paused higher tariffs for most trading partners aside from China, it has imposed a 10% levy in its place.
More supporting measures from authorities could be introduced soon, SSI Securities’ Hung said. Those could include preferential short-term lending to support businesses and steps to boost local consumption.
Other Southeast Asian nations are also seeking to avert high tariffs, with Malaysian Trade Minister Zafrul Aziz due to meet Greer in Washington on Thursday.
However, talks between Thailand and the US, originally scheduled to begin on Wednesday, were delayed after Washington asked Bangkok to address a set of unspecified “issues”.
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