Proactively build scenarios for the possibility of a global trade war

At the regular Government meeting in January 2025 held on February 5, Prime Minister Pham Minh Chinh said that the current world context is unpredictable, directly affecting our country, especially exports, production, business, and the macro economy. He asked Government members to forecast and closely analyze the situation and emerging issues. That is the possibility of a trade war in the world, which, if it happens, will disrupt supply chains and narrow export markets. From there, propose solutions to respond quickly, promptly, without being passive or surprised, without missing opportunities and maintaining momentum, keeping the rhythm, and maintaining the existing spirit to continue developing.

Prime Minister Pham Minh Chinh speaks at the regular Government meeting in January 2025 held on February 5. (Photo: Government Newspaper)

The Prime Minister suggested a number of solutions such as: continuing to focus on renewing traditional growth drivers, promoting new growth drivers; continuing to expand and diversify markets, products, and supply chains, especially new markets such as the Middle East and South America.

Respond promptly and flexibly to changes in economic and tariff policies of countries

On March 8, Prime Minister Pham Minh Chinh chaired a Government meeting to assess the regional and global economic situation, remove difficulties and obstacles, and propose tasks and solutions to promote economic growth of 8% in 2025 and double digits in the following years.

Speaking at the meeting, Prime Minister Pham Minh Chinh said that economic cooperation with foreign countries plays an important role, contributing to promoting economic growth of 8% in 2025 and double digits in the following years. The Prime Minister especially noted the implementation of tasks and solutions to promote economic, trade and investment cooperation with other countries, focusing on further promoting trade and investment cooperation with partners, especially major partners such as China, the US, Europe, Japan, South Korea, etc.

Accordingly, along with improving the competitiveness, transparency, attractiveness, and resilience of the economy and enhancing the self-reliance, proactive, deep, and effective integration of the economy, there must be proactive solutions to balance trade and promote the signing of investment protection agreements with partners.

Regular Government meeting in February 2025. (Photo: Government Newspaper)

The Prime Minister requested to continue to closely monitor and grasp developments in the situation, respond and respond promptly, appropriately, flexibly, feasibly and effectively to each market, especially in the context of changes in economic and tariff policies of countries.

Emphasizing the need to mobilize the nation's strength and resources, combined with the strength of the times, and gain support both domestically and internationally, the Prime Minister directed the promotion of political, diplomatic, and economic relations to strengthen economic-trade-investment cooperation, thereby contributing to promoting growth.

According to the Prime Minister, it is necessary to be persistent, proactive, flexible, active, and promote cooperation through measures, forms, and methods of cooperation in all fields, in the spirit of "harmonious benefits, shared risks"; prioritize the timely, satisfactory, and effective handling of issues of concern to partners, demonstrating Vietnam's goodwill, based on good cooperation, understanding, sincerity, and mutual respect; during the implementation process, pay attention to protecting the legitimate and legal rights and interests of all parties, on the basis of fair trade.

The Head of Government requested to develop a trade balance plan with major partners, paying attention to exploiting and supplementing shortages, supporting each other; maximizing the exploitation of signed FTAs ​​and promoting the signing of new FTAs ​​to diversify markets and supply chains; reviewing taxes, especially those of major partners, to adjust if necessary and in line with the interests of all parties; reviewing and proposing to promote cooperation in all fields, especially promoting cooperation in the fields of high technology, innovation, digital transformation, especially emerging industries.

Ministries, sectors and localities proactively resolve difficulties, create conditions for FDI enterprises to expand investment and business, help Vietnam participate deeply in the supply chain, and resolve issues related to work permits and visas.

Economic, trade and investment activities must be public and transparent. Authorities must step up inspection, examination and control of goods origin to avoid goods entering the Vietnamese market through smuggling and then being exported to other countries under cover, affecting Vietnam's reputation.

Issue directive on proactively adapting to the world and regional situation

On March 10, the Prime Minister signed and issued Directive 06/CT-TTg on key tasks and solutions to proactively, flexibly, promptly, appropriately and effectively adapt to the world and regional situation in order to achieve growth targets, maintain macroeconomic stability, curb inflation, and ensure major economic balances in 2025 and the following years.

In the Directive, the Prime Minister emphasized the spirit of "respecting time, promoting intelligence, being decisive and timely". In particular, he requested to continue to strongly, substantially and effectively promote economic, trade and investment cooperation with partners, especially neighboring countries, major countries, traditional friends, comprehensive strategic partners, strategic partners and comprehensive partners.

The Ministry of Foreign Affairs proactively promotes strong measures to continue building, consolidating and enhancing good relations with countries, especially major countries and comprehensive strategic partners.

The Ministry of Industry and Trade urgently completes an action plan on a harmonious and sustainable trade balance with major partners, noting the complementary nature of the trade structure between Vietnam and other countries instead of direct competition.

Continue to urgently and synchronously implement solutions to diversify markets and export products, promote trade promotion; effectively exploit signed free trade agreements (FTAs), promote the signing of new FTAs ​​with potential markets (Middle East, Africa, Latin America, Central Asia, India, Brazil, etc.).

Improve capacity and control the origin of goods to minimize the impact of foreign investment flows with signs of unhealthy or tax evasion that may affect our country's reputation; increase the effectiveness of market management activities, fight against smuggling and trade fraud.

The Prime Minister assigned the Ministry of Finance to review the taxes currently applied to countries, especially those with strategic partnerships/comprehensive strategic partnerships with Vietnam, including the US, in the spirit of ensuring harmony and balance of interests. The Ministry urgently submits to the Government the amendment of Decree 26/2023 to adjust tax rates on a number of groups of goods to ensure harmony, reasonableness, and benefits for both sides according to simplified procedures, to be completed in March 2025.

The State Bank of Vietnam urgently develops appropriate plans and measures to resolve issues related to cooperation with partners in payment and currency; applies balanced, reasonable and harmonious measures. The Ministry of Foreign Affairs, the Ministry of Home Affairs, and the Ministry of Public Security, according to their functions, tasks and authority, focus on resolving partners' concerns about work permits and visas.

Promoting economic and trade cooperation with the US

At a meeting with US Ambassador to Vietnam Marc Knapper on March 13, Prime Minister Pham Minh Chinh said that Vietnamese ministries and agencies are actively addressing the current concerns of the US in economic, trade and investment relations, including sending the Minister of Industry and Trade as a Special Envoy to the US to co-chair the Trade and Investment Council (TIFA) meeting mechanism. Relevant ministries, agencies and agencies of Vietnam are actively reviewing import tariffs on goods from the US, encouraging increased imports of key US products that Vietnam has demand for, especially agricultural products, liquefied gas and high-tech products.

Minister of Industry and Trade Nguyen Hong Dien (fourth from right) witnessed the signing ceremony of a memorandum of understanding on establishing a cooperation framework to facilitate transactions and imports of biofuels between Petrolimex and Marquis Energy in Washington DC (USA). (Photo: Ministry of Industry and Trade)

On the same day, in Washington DC (USA), Special Envoy of the Prime Minister, Minister of Industry and Trade Nguyen Hong Dien worked with US Trade Representative Jamieson L. Greer to discuss promoting bilateral economic and trade cooperation between Vietnam and the US.

At the meeting, Minister Nguyen Hong Dien informed about specific groups of solutions that the Vietnamese Government is proactively implementing to promote economic, trade and investment relations with the US in a comprehensive, harmonious and sustainable manner. He suggested that the technical level of the two countries continue to discuss so that the US can soon recognize Vietnam's market economy status and said that this would be an important decision, commensurate with the stature of the current comprehensive strategic partnership between the two countries.

Referring to concerns about the developments in US tariff policies, Minister Nguyen Hong Dien and US Trade Representative Jamieson Greer said that this is the time for Vietnam and the US to work closely together to create a fair and sustainable business environment through proactively reviewing and considering the removal of trade barriers that hinder investment and business activities; building an effective control mechanism for trade fraud, origin fraud, and illegal transshipment.

On this occasion, Minister of Industry and Trade Nguyen Hong Dien also had a working session with US Secretary of Energy Chris Wright; Senator Dan Sullivan of Alaska. Many important cooperation agreements between Vietnamese enterprises and US partners with a total value of 4.15 billion USD were signed under the witness of Minister Nguyen Hong Dien.

Source: https://thoidai.com.vn/viet-nam-chu-dong-thich-ung-truoc-thay-doi-chinh-sach-kinh-te-va-thue-quan-cua-cac-nuoc-211326.html