Vietnam PM : Still aiming for growth target despite U.S. tariffs
HANOI : Vietnam faces more challenges than opportunities because of U.S. tariffs but will still aim to meet its target of at least 8% growth this year, the Prime Minister Pham Minh Chinh said on Monday, ahead of the start of trade talks with Washington later this week. The Southeast Asian economy, which is heavily reliant on exports for growth, is facing a 46% tariff if a reduction cannot be negotiated before a U.S. moratorium expires in July. US President Donald Trump’s “reciprocal” tariffs are negatively affecting the global economy. Pham Minh Chinh added Vietnam has made good progress in talks with the Trump administration over the tariffs, he full impact of which has been postponed globally until July.
The tariffs, including a 46% levy on Vietnamese goods, are threatening global supply chains, Chinh told the parliament, adding that the country’s export-reliant economy is facing a “challenging and complicated situation.”
Chinh said Vietnam has made good progress in talks with the Trump administration over the tariffs, the full impact of which has been postponed globally until July.“We have stayed calm and courageous and taken several appropriate measures,” Chinh said. “Vietnam is among the first countries the US has agreed to hold tariff negotiations with.”
“We are facing more challenges than opportunities this year,” he said, adding the trade war also offered opportunities for the country to restructure its economy. Chinh said Vietnam will seek to boost its exports to 17 markets that it has signed free trade agreements with.
Vietnam will also seek to boost consumption and ramp up public investment to upgrade its infrastructure this year, including starting work on a multi-billion dollar railway line linking its Haiphong port with China.
In recent years, Vietnam has faced power shortages that hit factories and families in northern provinces during heatwaves. “We won’t let power shortages happen this year, in any circumstances,” Chinh said.
Source : Reuters