Vietnam Pursues New Trade Deals to Counter U.S. Tariffs
Vietnam is seeking new trade agreements to offset the impact of U.S. tariffs, potentially cutting its exports to the U.S. by up to 20%. The country aims to sign free trade agreements with Latin America's Mercosur bloc and Gulf Cooperation Council countries to sustain export growth.
In an effort to counteract the economic blow from U.S. tariffs, Vietnam's Prime Minister has announced plans to secure new trade agreements this year. The tariffs, posed by its largest trade partner, threaten to significantly slash the country's exports.
The United Nations Development Programme highlighted that these U.S. duties could cut Vietnam's exports to the U.S. by up to one-fifth, marking the country as the hardest hit in Southeast Asia. Prime Minister Pham Minh Chinh articulated the challenges posed by the U.S.'s 'reciprocal' tariffs and international strategic competition.
Despite the hurdles, Pham Minh Chinh remains optimistic about a 12% growth in exports. As part of his strategy, Vietnam aims to establish free trade agreements with the Mercosur trading bloc and the Gulf Cooperation Council by year's end. Concurrently, negotiations with the U.S. continue amidst past tariff impositions.
(With inputs from agencies.)
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