Vietnam hails US pact a boost for business as firms await deal details
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The agreement, announced by US President
Donald Trump on Wednesday, would place a lower-than-expected 20 per cent tariff on many Vietnamese exports and a 40 per cent rate for transshipments through Vietnam from third countries.
The agreement follows months of talks and a raft of concessions by regional manufacturing powerhouse Vietnam to negotiate a reduction in tariffs that were initially set at 46 per cent, triggering alarm in the export-dependent, Communist-ruled nation.
'This is an important negotiation result, creating hope and expectations for businesses,' Finance Minister Nguyen Van Thang told a cabinet meeting, adding Vietnam would also expand 'harmonious and sustainable' trade relations with other countries.
The announcement followed a phone conversation between Trump and Vietnamese President To Lam on Wednesday. Foreign ministry spokesperson Pham Thu Hang said To Lam 'highly values President Donald Trump's attention to Vietnam'.
08:13
After Vietnam threatened with 46% US tariffs, how will Hanoi strike a deal with Washington?
After Vietnam threatened with 46% US tariffs, how will Hanoi strike a deal with Washington?
The United States is Vietnam's largest export market and the two countries' growing economic, diplomatic and military ties are a hedge against Washington's biggest strategic rival, China, a top source of imports for Hanoi. The United States recorded a trade deficit of US$123 billion with Vietnam last year, one of its highest globally.
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