HANOI, May 5 (Reuters) — Vietnam will continue to pursue its 2025 growth target of at least 8% despite new challenges posed by potential U.S. tariffs, Prime Minister Pham Minh Chinh said on Monday, ahead of upcoming trade negotiations with Washington.
Vietnam, which relies heavily on exports, is facing the possibility of a 46% tariff if ongoing discussions do not result in an agreement before a U.S. moratorium expires in July.
“We have stayed calm and courageous and taken several appropriate measures,” Chinh said during a speech to parliament. He noted that Vietnam is among the first countries with which the United States has agreed to initiate tariff negotiations, with the first session scheduled for Wednesday.
Chinh emphasized that the government is working closely with negotiators and relevant agencies to finalize a negotiation plan. He also highlighted concerns that U.S. tariffs could disrupt global supply chains and impact the broader global economy. Vietnam, a major manufacturing hub for many Western companies, recorded a trade surplus of over $123 billion with the United States in 2024.
Acknowledging that “more challenges than opportunities” are expected this year, Chinh said Vietnam would also view the situation as a chance to restructure its economy. Plans include boosting exports to 17 markets with which Vietnam has signed free trade agreements, increasing domestic consumption, and accelerating public investment projects.
Among the infrastructure initiatives, Vietnam plans to begin construction on a multi-billion dollar railway line connecting Haiphong port with China.
Chinh also addressed concerns about power shortages, which have previously affected northern provinces during heatwaves. He affirmed that authorities would take measures to ensure stable power supplies throughout the year.
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