Vietnam’s Strategic Response to U.S. Tariffs: Can It Protect Its Growth Ambitions?

Vietnam’s Strategic Response to U.S. Tariffs: Can It Protect Its Growth Ambitions?

Vietnam faces mounting pressure to preserve its economic momentum as the United States revives protectionist trade policies under President Donald Trump. With new tariffs targeting Vietnamese exports, including a steep 46% rate, Vietnam is acting swiftly—both diplomatically and domestically—to mitigate the impact and protect its 8% GDP growth target for 2025.

At the heart of this response are a newly formed government negotiation delegation, the strengthening of export oversight, and strategic dialogue with the United States. The situation highlights Vietnam’s challenge of balancing its deepening trade ties with China while safeguarding access to the U.S., one of its largest export markets.

Government Negotiation Delegation Formed to Address U.S. Tariffs

On April 12, 2025, Prime Minister Phạm Minh Chính issued Decision No. 753/QĐ-TTg, establishing an official Government Negotiation Delegation to handle trade negotiations with the United States. The delegation is led by Nguyễn Hồng Diên, Minister of Industry and Trade, and supported by Deputy Minister Nguyễn Sinh Nhật Tân. The Ministry of Industry and Trade serves as the standing agency responsible for coordination.

Their mission: to develop a comprehensive negotiation strategy, protect national interests, and seek a reciprocal trade agreement that is balanced, sustainable, and beneficial for both sides.

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Trump's Tariff Policy and Its Impact on Vietnam

President Trump’s administration recently declared a national economic emergency, launching a 10% blanket tariff on all imports effective April 5, followed by additional targeted tariffs, including the 46% tariff on Vietnamese goods. This abrupt shift comes amid U.S. claims of origin fraud and transshipment involving Southeast Asian exporters.

The timing is particularly troubling for Vietnam, which had earlier announced a national target of 8% GDP growth for 2025—a figure now at risk due to weakened export prospects.

Industries such as electronics, textiles, solar panels, and footwear—key contributors to Vietnam’s export revenue—are especially vulnerable to these trade disruptions.

Nguyễn Hồng Diên’s Visit to Washington: Seeking Resolution

In March 2025, Minister Nguyễn Hồng Diên led a diplomatic mission to Washington, D.C., to meet with U.S. Trade Representative Jamieson L. Greer. The visit aimed to establish a channel for negotiation and express Vietnam’s willingness to rebalance the trade relationship through legitimate and constructive measures.

Vietnam also highlighted its ongoing efforts to reduce its trade surplus with the U.S. by boosting imports of American products such as agricultural commodities and energy supplies.

New Regulations on Export Oversight and Origin Verification

On April 15, 2025, the Ministry of Industry and Trade issued Directive No. 09/CT-BCT, reinforcing the state's ability to monitor and regulate the origin of exported goods. This is a direct response to U.S. concerns about fraudulent "Made in Vietnam" labeling.

The directive introduces stricter inspection protocols and inter-agency cooperation to prevent illegal transshipment and maintain Vietnam’s reputation as a transparent and credible exporter.

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Rising Trade with China Adds Complexity

While U.S.-Vietnam trade faces new headwinds, Vietnam’s economic ties with China have reached an all-time high. In 2024, bilateral trade between the two countries hit a record USD 230 billion, making China Vietnam’s largest trade partner.

However, this increased interdependence presents a geopolitical dilemma. While Vietnam relies on China for raw materials and capital goods, it depends on the U.S. and EU for finished product markets. Navigating this tightrope requires strategic clarity, compliance reforms, and diversified partnerships.

Outlook: Can Vietnam Stay on Track?

Despite the uncertainty, Vietnam’s response shows resilience and long-term vision. By forming a dedicated trade negotiation team, tightening export regulations, and engaging diplomatically, the country is working to maintain its growth trajectory and avoid overexposure to global supply chain risks.

While its 8% growth target now faces greater challenges, the steps taken suggest that Vietnam is prepared to defend its economic interests without sacrificing credibility or compliance.

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