Vietnam sets up task force amid Trump’s global tariffs

THE HANOI TIMES —Prime Minister Pham Minh Chinh has called for the immediate creation of a rapid response task force to develop proactive measures following the US decision to impose countervailing duties of up to 46% on Vietnamese imports.

He floated the idea at a government meeting today [April 3] after Washington unveiled its new tariff policy.

"Vietnam would like the US to adopt policies that better reflect the strong relationship between our two countries, and that are commensurate with Vietnam's status as a developing country still grappling with the lingering effects of war,” Chinh said.

The US reciprocal tariffs apply to more than 180 trading partners. About half of them face a 10% across-the-board tariff as of April 5, while key trading partners will be subject to higher rates of up to 50% as of April 9. Vietnam is among the hardest hit, facing a 46% tariff alongside China, Cambodia, Indonesia, and Myanmar.

Chinh instructed ministries to take "proactive and flexible" measures to manage the situation. He likened the challenge to previous external shocks, such as the Covid-19 pandemic and supply chain disruptions.

The government will establish a rapid response task force led by Deputy Prime Minister Bui Thanh Son. Deputy Prime Minister Ho Duc Phoc will oversee coordination among ministries and respond to the feedback of businesses, especially large exporters.

The prime minister warned that global trade competition is becoming more unpredictable. But he also saw the situation as an opportunity for Vietnam to restructure its economy toward high-tech, innovation-driven and sustainable growth.

"This is an opportunity for Vietnam to build an independent, self-reliant economy while deepening international integration," he said. Chinh highlighted efforts to diversify exports, expand supply chains, and develop the domestic market, and reiterated the government's goal of achieving at least 8% GDP growth by 2025.

Do Ngoc Hung, Vietnam's trade counsellor to the US, told local media that the new tariffs would be imposed on a wide range of goods, including seafood, plastics, rubber, wood, paper, textiles, footwear, machinery, electronics and components. Businesses have expressed concern that the 46% tariff will significantly undermine the competitiveness of Vietnamese products compared to those from other countries.

According to customs data, Vietnam exported $119.5 billion worth of goods to the US in 2024, while importing $15.1 billion. The country has 15 export categories worth more than $1 billion, including computers and components ($23.2 billion), machinery and equipment ($22 billion), and textiles ($16.2 billion). Other major exports include telephones, timber products, and footwear, valued between $8.3 billion and $9.8 billion. Agricultural exports such as cashews, seafood, and coffee also play an important role, with cashews generating $1.15 billion, seafood $1.83 billion, and coffee $323 million.

Hung suggested that Vietnam should maximize the effectiveness of trade agreements with the US, such as the Trade and Investment Framework Agreement (TIFA) and the Bilateral Trade Agreement (BTA). He also called for increased imports of key US products to meet domestic demand. In addition, he stressed the need to attract more US investment in strategic industries where both nations share interests and to increase US content in Vietnamese exports.

US Treasury Secretary Scott Bessent previously told Republican senators that countervailing duties represent a "ceiling" for tariffs, which could be reduced if trading partners meet the Trump administration’s conditions.

Some products will remain untouched, including aluminum, steel, automobiles and auto parts - already subject to a 25% tariff - as well as gold, copper, pharmaceuticals, semiconductors, lumber and certain energy and mineral resources not available in the US.