Trade deals with the US needs being concluded soon: Prime Minister

THE HANOI TIMES — Prime Minister Pham Minh Chinh said on May 6 that one of the top priorities for Vietnamese ministries and sectors in the coming period is to quickly finalize trade agreements with the US.

During the government's monthly meeting, the prime minister instructed the ministries to focus on responding to the US's reciprocal tariffs.

He said that government bodies must carefully prepare plans and negotiate effectively with the US based on the principle of "harmonizing interests and sharing risks," all the while protecting Vietnam's legitimate rights and interests.

"These measures must promote balanced and sustainable trade without compromising Vietnam’s existing international agreements," he added.

The prime minister called for diversifying markets, products, and supply chains; improving the quality and competitiveness of goods and services; and being ready to adapt to global economic developments.

At the same time, the domestic market needs to be tapped into, and the origin of goods needs to be monitored more closely.

"Maintaining regular communication and providing support to businesses and workers affected by the new US tariffs is essential," Chinh added.

According to the prime minister, Vietnam has already taken proactive and flexible steps and achieved initial results. It is one of the first countries with which the US has agreed to negotiate. The two sides will begin their first round of talks on May 7.

He said that the new US tariffs are expected to jeopardize Vietnam’s 8% GDP growth target for 2025.

Efforts must be made to carry out territorial reorganization, establish two-tier local governments, streamline administrative procedures for citizens and businesses, and promote decentralization.

He also emphasized the importance of boosting economic growth, maintaining macroeconomic stability, controlling inflation, and ensuring economic balances.

Relevant government agencies should pursue flexible monetary and exchange rate policies, lower lending rates, improve access to credit for businesses and individuals, and strengthen management of the gold market. They should also prevent smuggling, market manipulation, and hoarding.

The prime minister called for the revitalization of traditional growth drivers, the promotion of new growth engines, the expansion of export markets, and the acceleration of negotiations for new trade agreements.

Ministries must stimulate domestic consumption and promote the "Vietnamese People Use Vietnamese Goods" campaign, particularly for OCOP (One Commune, One Product) items. The Ministry of Construction was directed to remove bottlenecks and stimulate the real estate market.

The Prime Minister emphasized the importance of public investment as an economic driver and urged the Ministry of Finance to disburse 100% of public investment funds.

He also called for the swift resolution of issues facing major foreign direct investment (FDI) projects, particularly those involving high technology, and stressed the importance of easing visa policies and expanding visa exemptions to attract more tourists.

Other goals include fostering the development of cultural industries and preparing for major upcoming national celebrations, such as the 135th anniversary of President Ho Chi Minh's birth and the 80th National Day.

The prime minister reminded the Ministry of Construction to accelerate the construction of at least one million affordable homes, eliminate substandard housing nationwide, and ensure social welfare. The goal is to leave no one behind, protect the environment, and improve resilience to natural disasters and climate change.

Positive socio-economic performance in four months

According to reports at the meeting, Vietnam’s socioeconomic performance in the first four months of 2025 was stronger than in the same period last year. Positive growth was maintained across agriculture, industry, and services.

The agriculture sector quickly rebounded after Typhoon Yagi in late 2024, experiencing stable growth in farming, livestock, and fisheries.

In April, industrial production rose 1.4% from March and 8.9% year-on-year. Overall industrial output increased by 8.4% over four months (compared to 6.3% last year), with manufacturing up by 10.1% (compared to 6.5% in 2024).

The services sector continued its strong growth. Total retail sales and consumer service revenue jumped by almost 10%. The country welcomed a record 7.7 million international visitors, a gain of 23.8%.

Macroeconomic stability was maintained, with inflation under control and major economic balances ensured. The consumer price index (CPI) rose by an average of 3.2% over four months. State budget revenue surpassed VND944 trillion (US$36.4 billion), nearly half the annual target and up 26.3% year-on-year.

The total import-export turnover was estimated at over $275 billion, marking a 15% increase, and the trade surplus was over $5 billion. Energy and food security were secured. Rice exports reached over 3.4 million tons. The labor market remained stable, striking a balance between supply and demand.

Foreign investment continued to rise. Registered foreign direct investment (FDI) totaled nearly $13.8 billion in the first four months, up almost 40% year-on-year, with actual disbursements exceeding $6.7 billion — the highest for the same period since 2020.

The government prioritized waste prevention and cost-cutting. The authorities proposed removing obstacles for over 2,200 stalled projects spanning 347,000 hectares and worth nearly VND5.9 quadrillion (US$227 billion).

Attention was given to cultural and social issues, ensuring social welfare and improving living standards. Provinces and cities received over VND2.8 trillion (US$107.8 million) to support the elimination of substandard housing. A total of 106,000 homes were completed, and construction began on another 95,000.

According to the 2025 World Happiness Report, Vietnam ranked 46th out of 143 countries, up eight places from 2024. In the first quarter of 2025, workers' average monthly income rose 10.7% year over year to VND9.4 million ($362).