Vietnam To Craft Measures To Reduce Dependence On Exports To U.S.

Vietnam will devise measures to improve product quality to cope with risks from U.S. tariffs as it seeks to expand exports to other markets and reduce its reliance on the United States, the country’s deputy trade minister said, Phuong Khanh Vu and Thuong Nguyen reported for Reuters.

Thang said the tariffs offer Vietnam a chance to improve product quality and diversify its export markets, especially those with existing free trade agreements.

The Ministry of Industry and Trade is coordinating with firms to develop these measures, Deputy Minister Phan Thi Thang told an investment conference in Hanoi.

Vietnam reached an agreement with the Trump administration that saw a 20% tariff imposed on its products and a 40% levy on transshipments through Vietnam from third countries.

Thang said the tariffs offer Vietnam a chance to improve product quality and diversify its export markets, especially those with existing free trade agreements. “With 16 free trade agreements, Vietnam is expanding its export markets to reduce its reliance on the U.S. market,” she said.

Vietnam’s gross domestic product (GDP) grew 7.96% in the second quarter, up from 6.93% in the first quarter, but remains short of the country’s full-year growth target of at least 8%.

Prime Minister Pham Minh Chinh said at a separate meeting on Wednesday that reaching that target remains a “big challenge.”