Prime Minister Pham Minh Chinh calls for thorough preparation for tax negotiations with the US
Prime Minister Pham Minh Chinh has called for thorough preparation for tax negotiations with the US, emphasizing the need for a swift, flexible approach that protects the country’s interests, while also seeing this as a strategic opportunity to restructure Vietnam’s export dynamics.
Prime Minister Pham Minh Chinh on April 22 chaired a meeting in Hanoi with various ministries and agencies to assess the current situation and discuss solutions for adjusting taxes and fees related to import and export goods.
He shared that, following the US' announcement, Vietnam had quickly and flexibly responded with political and diplomatic solutions, issuing government decrees to reduce tariffs on certain US products to zero.
Several projects of interest to the US have also been successfully resolved within the legal framework and agreements between both nations, the cabinet leader added.
Beyond projects initiated by the US, Vietnam has also taken proactive steps to advance its own projects, striving to ensure balanced and sustainable trade that benefits both parties. This includes initiatives like ordering enterprises to purchase gas, Boeing aircraft, and transport planes to help balance trade.
“With calmness, proactivity, and confidence, we take appropriate actions, focusing on dialogue, avoiding escalating tensions that serve no one’s interest, neither the consumer’s nor the business’s. Every action we take must balance common interests while safeguarding Vietnam’s core priorities. It can be said that our current responses are timely, effective, and aligned with the Party’s guidelines, particularly with the Politburo’s Resolution 59 on international integration,” the PM remarked.
In light of these developments, the Government chief urged that future negotiations be flexible, creative, and assertive, drawing on previous experience to navigate this crucial period effectively.
He accentuated the importance of adhering to the guidance from the Politburo, the Party General Secretary, and the Government, and consulting US demands to devise proper solutions. He emphasized that negotiations are a key solution to ensuring a sustainable and long-term trade balance with the US.
“Of course, this must not undermine previously established international agreements or signed commitments. We must ensure that the demands, objectives, and solutions serve the interests of both sides. The guiding principle is ‘harmonious benefits, shared risks.’ We need to prepare suitable plans and scenarios based on current conditions and global trends,” the PM stressed.
Alongside the negotiations, the Government leader emphasized the need to continue diplomatic and political efforts, as well as to engage the business community to achieve the set objectives within a 90-day deadline.
Regarding technical matters related to tariffs, he requested that the Ministry of Finance lead the analysis, while other ministries and agencies should prepare solutions for non-tariff issues.
For the negotiation team, the PM laid stress on the importance of focusing on the negotiations, being flexible, well-versed in the law, and fully aware of the situation. He also viewed this as an opportunity to restructure Vietnam’s export strategies.
“We must diversify markets, products, and supply chains, focus on improving product quality and reducing costs for greater competitiveness, and explore high-tech products as well as green development in line with global trends and the circular economy. This is also a chance to restructure businesses. Along with active negotiations, we must proactively restructure Vietnam’s export drivers and business models,” he concluded.
PM Chinh also called on the Ministry of Industry and Trade to quickly complete and present a decree on trade control and strategy for approval, while ensuring the implementation of the Government’s resolution to reduce administrative procedures and costs.