HANOI (Bloomberg): Vietnam’s Prime Minister Pham Minh Chinh said his nation has a "unique bond” with the US as his government engages in trade talks with the Trump administration to avoid a large tariff on its products.
Chinh, who earlier this week warmly welcomed Chinese President Xi Jinping to Hanoi, said Vietnam’s relationship with the US is unlike ties with other countries, according to a post on the government’s website Friday.
The premier made the comments in a meeting in the capital with Warburg Pincus Chief Executive Officer Jeffrey Perlman, who is also chairman of the US-Asean Business Council. US Ambassador to Vietnam Marc Knapper also attended.
Vietnam was among the first countries singled out by President Donald Trump for showing a willingness to negotiate over tariffs following a phone call between the US leader and Communist Party chief To Lam.
The two countries announced talks hours after Trump declared a 90-day pause on higher tariffs, which he has temporarily pared back to 10%. Vietnam was facing a 46% duty on products shipped to its most important export market.
Vietnam’s leaders had a muted response to Xi’s call for the fellow Communist country to jointly oppose "unilateral bullying” in a subtle jab at the US, underscoring Hanoi’s careful diplomatic dance between the great powers.
Vietnam, Chinh said, "has largely addressed US concerns by proactively reducing taxes and increasing imports of American goods, and remains ready to engage in discussions and negotiations,” the prime minister said, according to the government report. The South-East Asian country seeks a "sustainable and balanced trade relationship” with the US, he said.
Vietnam’s export-dependent economy would take a significant hit from a reciprocal tariff.
The value of Vietnam wood shipments to the US - the nation’s largest export market - are estimated to drop by 30% this year if the 10% tariff remains, according to Dau Anh Tuan, deputy secretary general of Vietnam’s chamber of commerce and industry, Tuoi Tre reported Friday.
Vietnam’s 2024 exports of wood and wood products to the US were valued at $9.06 billion, up 24% from the previous year, according to Vietnam’s Customs Department.
Disbursed foreign investment in Vietnam would drop 3%-5% if the reciprocal tariff were at 20%-25%, said Can Van Luc, a member of the National Fiscal and Monetary Policy Advisory Council, Tuoi Tre reported.
Vietnam on April 30 will celebration "Liberation Day,” the 50th anniversary of the end of its war with the US.
The two nations’ "relationship is special and carries a unique bond, different from Vietnam’s relations with other countries,” Chinh said, according to the statement. "Vietnam is a model in turning former enemies into friends, setting aside the past, overcoming differences, promoting similarities and looking toward the future.”
--With assistance from Nguyen Xuan Quynh.
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