Staff Reporter
Vietnam’s finance ministry has proposed cutting preferential import tariffs on various products, including LNG, automobiles, wood, and agricultural goods, as the country aims to mitigate the looming threat of US tariffs.
The proposed changes would reduce tariffs on certain vehicles to 32%, down from a range of 45% to 64%. The tax on LNG would drop from 5% to 2%, while the tariff on ethanol would decrease from 10% to 5%.
Agricultural items such as apples, frozen chicken, almonds, and sweet cherries would also see reduced tariffs, according to a statement from the ministry, referencing Nguyen Quoc Hung, director of the tax management and supervision unit.
The draft regulatory changes are intended to navigate the complex and unpredictable global geopolitical and economic landscape, with tariff policies having a “significant” impact on economies worldwide, including Vietnam’s.
Vietnam has been actively working to strengthen trade relations with the US and demonstrate to the Biden administration its commitment to addressing its trade surplus, which grew to $123.5 billion last year, making it the third-largest trade gap with the US, following China and Mexico.
Earlier this month, during a visit to the US by Vietnam’s trade minister, the country announced provisional deals with US companies totaling $4.15 billion. Vietnam also indicated it is considering removing trade barriers and cracking down on export fraud.
The revised decree regarding the most favored nation (MFN) tariff adjustments is expected to be issued within this month, according to the ministry’s statement.
“It is essential to adjust the MFN import tariff rates for certain goods to ensure fair treatment among Vietnam’s comprehensive strategic partners,” the statement noted. Vietnam and the US have been gradually enhancing their cooperation since upgrading their bilateral relationship to a comprehensive strategic partnership in 2023.
