Latest news with #Vietnam-US
Bangkok Post
13-07-2025
- Business
- Bangkok Post
China must 'play long game' with trade partners as 'US looks like the big bully': analysts
With US President Donald Trump sending more tariff letters to trade partners, Beijing has stepped up efforts - like rallying its own trade partners - to collectively push back against Washington's trade protectionism. The world's second-largest economy will provide considerable development opportunities - from broader market access to greater regional integration - while being mindful of US threats, according to statements this week following a string of overseas visits by Chinese officials. Some analysts say the comments suggest that Beijing is embracing an increasingly pragmatic approach, rather than just strongly worded warnings, as it fortifies itself for another round of talks with Washington early next month. "China needs to project a firm diplomatic stance to declare its principles, while this should be coupled with actions that offer tangible benefits to its neighbouring trade partners," said Chen Fengying, a senior fellow at the China Institutes of Contemporary International Relations. "The US will inevitably impose additional tariffs on transshipped goods," Chen said. "So, it is crucial for China to play the long game with its neighbours and gradually build a more unified regional market." While meeting his counterparts on Thursday at the China-Asean Foreign Ministers' Meeting in Kuala Lumpur, Malaysia, Chinese Foreign Minister Wang Yi vowed to upgrade the existing free-trade agreement with the 10-nation bloc. Most members received a 20-40% hit from Trump's so-called reciprocal tariffs. Wang also offered an olive branch to South Korea and Japan, vowing to move towards a trilateral free-trade deal, and to promote the Regional Comprehensive Economic Partnership, a trade deal comprising major Asian economies and Australia. "The more complex the situation becomes, the more we must shield our cooperation from disruptions," he said. A day earlier, commerce vice-minister Ling Ji arrived in Cambodia, where he expressed to officials China's willingness to "jointly address the risks and challenges posed by protectionism and unilateralism". Cambodia, a country with rising Chinese investment, was hit with a 36% US tariff. Transshipments by Chinese exporters are a key target of the US tariffs. Louise Loo, head of Asia economics at Oxford Economics, said that while the definition of a "transshipment" remains unclear, the tiered-tariff system in the Vietnam-US deal is set to weaken the advantage of "China plus one" manufacturing. "Economies like Vietnam and Cambodia, which are highly reliant on Chinese inputs, are particularly vulnerable," Loo said. Nick Marro, principal economist for Asia at the Economist Intelligence Unit, said: "It's obvious that the transshipment tariffs are targeting China - Beijing knows this. So, they are going to be very sensitive to any move by the Vietnamese or any other economy to crack down on Chinese shipments. "At the end of the day, Beijing doesn't want to alienate other countries at a time when the US looks like the big bully in the room." Asian governments, caught between China and the US, may seek lower tariff rates before Trump's Aug 1 deadline. However, Washington's one-after-another tariff decisions set a high threshold for tariff relief, according to analysts, and some say it could be advantageous for Beijing to encourage other countries to take a harder stance. "Tariffs would presumably be removed if recipient economies decide to build or manufacture products within the United States," Loo said. "We think this represents a very high bar for a complete tariff de-escalation." Loo pointed to South Korea's experience, noting that, despite relocating part of Hyundai's production to the US and increasing reshoring efforts, the country still faced a 25 per cent tariff. And Vietnam, despite being receptive to a deal since Trump announced his "Liberation Day" tariffs on April 2, still saw its US-bound goods hit with a 20% tariff. South Korea and Japan - US allies slapped with 25% US tariffs - are seeking to take a harder stance in negotiations. Canada, a free-trade neighbour of the United States under the United States-Mexico-Canada Agreement, was hit with a 35% duty. Brazil, a key member of the Brics bloc of emerging economies, including China, has threatened to retaliate against the 50% tariff that Washington slapped on Brazilian exports to the US. "The tariffs on Brazil, in response to the treatment of former president Jair Bolsonaro, showcase how tariffs are being used as a tool for a number of aims of the administration," two of HSBC's global economists, James Pomeroy and Maitreyi Das, wrote in a note on Friday.
RTHK
02-07-2025
- Business
- RTHK
Trump says trade deal struck with Vietnam
Trump says trade deal struck with Vietnam Trump said the United States will charge a 20-percent tariff for Vietnamese exports into America, and a 40-percent levy for trans-shipments. File photo: Reuters US President Donald Trump announced on Wednesday that he had struck a trade deal with Vietnam under which the country would face a minimum 20 percent tariff and open its market to US products. The deal comes a week ahead of Trump's self-imposed July 9 deadline for steeper tariffs on US trade partners to take effect if agreements had not been reached. Trump initially announced that the trade deal had been reached, without providing details. "It is my Great Honor to announce that I have just made a Trade Deal with the Socialist Republic of Vietnam after speaking with To Lam, the Highly Respected General Secretary of the Communist Party of Vietnam," Trump wrote on his Truth Social platform. He said that under the "Great Deal of Cooperation," imports of Vietnamese goods will face a 20 percent US tariff, while goods that pass through Vietnam from other countries, or trans-shipments, will see a steeper 40 percent tariff. "In return, Vietnam will do something that they have never done before, give the United States of America Total Access to their Markets for Trade," he said. "In other words, they will 'open their market to the United States,' meaning that we will be able to sell our product into Vietnam at ZERO Tariff," he added. The president said he believed US-made SUVs, "which do so well in the United States, will be a wonderful addition to the various product lines within Vietnam." General Secretary of the Communist Party of Vietnam Central Committee To Lam welcomed a new trade agreement with the United States during a phone call with Trump, Vietnam News Agency reported. He urged Washington to soon recognise Vietnam as a market economy and to lift export restrictions on certain high-tech goods. The two leaders also discussed major directions and measures to further strengthen the Vietnam-US comprehensive strategic partnership in the coming years. Trump's announcement comes a week before the US has threatened to reimpose steep tariffs on dozens of economies, including the EU and Japan, many of which are still scrambling to reach deals that would protect them from the measures. Those higher tariffs are part of a package Trump initially imposed in April, citing a lack of "reciprocity" in trading relationships, before announcing a temporary lowering to 10 percent. Without a deal, Vietnam's "reciprocal tariff" would have risen from the baseline 10 percent to 46 percent. Since April, Washington had so far only announced a pact with Britain and a deal to temporarily lower retaliatory duties with China. Both involve the United States maintaining some of Trump's tariffs on the trading partners. (AFP/Xinhua)
Fibre2Fashion
01-07-2025
- Business
- Fibre2Fashion
European bizs optimistic about Vietnam's long-term growth: Eurocham
European businesses continue to have strong confidence in Vietnam's long-term economic prospects despite global market turbulence and some delays in domestic reforms, according to the latest business confidence index (BCI) report released by the European Chamber of Commerce (EuroCham) in Vietnam. European businesses in Vietnam are showing remarkable resilience as international trade tensions mount and supply chains remain under pressure. For the second quarter (Q2) this year, BCI slightly dropped to 61.1, reflecting heightened global uncertainty. European businesses continue to have strong confidence in Vietnam's long-term economic prospects despite global market turbulence and some delays in domestic reforms, and report limited direct financial impact, a report by EuroCham said. Only 11 per cent of respondents foresee a negative outlook in the coming months. The overall sentiment, however, remains one of cautious optimism. The overall sentiment, however, remains one of cautious optimism, with the country still viewed as a resilient and promising investment destination. Seventy-two per cent of surveyed enterprises said they would recommend Vietnam as an investment destination with long-term potential, a domestic news agency reported. Among the key factors influencing sentiment is the unresolved impact of US tariffs. Following the third round of Vietnam-US trade negotiations in June with no definitive outcomes, uncertainty over tariff adjustments continues to weigh on strategic planning, particularly for companies managing cross-border supply chains. In fact, only 11 per cent of respondents foresee a negative outlook in the coming months, while 39 per cent remain neutral and 43 per cent still rate their business prospects as 'good' or 'excellent'. This suggests that most companies are adopting a prudent 'wait-and-see' approach rather than anticipating a downturn. Despite global headwinds, European companies in Vietnam report limited direct financial impact. Just 15 per cent of businesses said they had experienced net negative outcomes like penalties, cancelled orders, or price renegotiations. Meanwhile, 70 per cent reported no significant disruptions, and 5 per cent even noted net gains. Fibre2Fashion News Desk (DS)
The Star
22-05-2025
- Business
- The Star
Eric Trump attends groundbreaking event for US$1.5bil Vietnam resort
Eric Trump (right) and wife Lara Trump (second left) at the groundbreaking ceremony for the Trump International, Hung Yen resort and golf course project in Hung Yen province on May 21, 2025. - AFP HANOI: Eric Trump said the Trump Organization's new US$1.5 billion luxury resort complex to be built in northern Vietnam will "blow everybody away,' even as the nation's leaders negotiate with the US administration to avoid a cripplingly high tariff. "I will be here incredibly often,' Eric Trump said at the groundbreaking event in Hung Yen province on Wednesday (May 21). "This project and many of the other ones that we do together are going to be the envy of all of Asia. They're going to be the envy of the entire world, and Vietnam deserves it,' he said. The project in Hung Yen province, which will feature five-star hotels, golf courses and residential estates, spans more than 990 hectares (2,446.3 acres) along the Red River. The first phase is expected to be completed in two and a half years, while the whole project is set to be ready by 2029, according to Vietnamese developer Kinh Bac City Development Holding Corp. Vietnam's Prime Minister Pham Minh Chinh, who was also at the event, said he looks forward to welcoming President Donald Trump to visit the nation, and that the project will contribute to the development of the Vietnam-US relationship and reaffirm the trust of foreign investors in Vietnam. The visit by the Trump Organization's executive vice president takes place as Vietnamese and US negotiators hold a second round of trade talks in Washington in search of a tariff deal. Vietnam has engaged in weeks of intense diplomacy with the US, seeking to avert a threatened 46% tariff, which was later wound back to 10% for 90 days to allow time for talks. The punitively high levy reflects US displeasure with the country's trade surplus, the third-largest globally behind China and Mexico. Vietnam has repeatedly vowed to purchase more American goods, while offering to remove all tariffs on US imports. It's also stepped up its fight against trade fraud, seeking to address US concerns about Chinese goods being shipped via Vietnam to sidestep tariffs. Trade between the two nations ballooned over the past decade to about $150 billion in 2024, as global companies sought to diversify production away from China during Trump's first term in office. Vietnam is one of South-East Asia's fastest-growing economies, though US tariffs could put this year's target of 8% expansion at risk. Eric Trump and a delegation from the Trump Organization are expected to be in Ho Chi Minh City on Thursday for talks with local officials on a proposed tower project in the Thu Thiem area of the commercial hub, Vietnam media reported. - Bloomberg
Fibre2Fashion
21-05-2025
- Business
- Fibre2Fashion
US, Vietnam begin 2nd round of trade pact talks
The second round of negotiations on a Vietnam-US reciprocal trade agreement is under way in Washington, DC, according to the Vietnamese Ministry of Industry and Trade (MoIT). The Vietnamese delegation is being led by MoIT Minister Nguyen Hong Dien. The second round of talks on a Vietnam-US reciprocal trade agreement is under way in Washington, DC, the Vietnamese Ministry of Industry and Trade (MoIT) said. MoIT Minister Nguyen Hong Dien, leading the country's delegation, also met representatives from nuclear technology firm Westinghouse and conveyed them that Vietnam wants to restart its nuclear power programme to ensure energy security. Dien also met representatives from Westinghouse, a nuclear technology corporation, and conveyed them that Vietnam intends to restart its nuclear power programme to ensure energy security amid rising electricity demand and the current limitations of renewable energy sources. Energy cooperation will also be an important driver for balancing bilateral trade, the minister affirmed. Both sides agreed to work towards signing a memorandum of understanding between Westinghouse and the Vietnam National Industry-Energy Group (Petrovietnam) in nuclear power development, a Vietnamese news agency reported. The two sides will also continue to promote cooperation, particularly in critical areas like investment models for energy infrastructure, technology transfer and the training and development of technical personnel for the nuclear power sector. Fibre2Fashion News Desk (DS)
