Insight: Vietnam will begin trade talks with the US on May 7, 2025, to address tariff issues that threaten key exports. With Q1 exports reaching $31.4B, Vietnam aims to protect trade, ensure balanced agreements, and hit its 8% GDP growth target.
Vietnam will start trade talks with the US on May 7, 2025. Prime Minister Pham Minh Chinh announced this in the National Assembly on May 5. Vietnam is one of six countries the US picked for tariff negotiations. The US has set high “reciprocal” tariffs but paused them for 90 days for most trade partners, except China. A temporary 10% tariff applies instead. This article explains Vietnam’s response and plans for the talks.
Global challenges and Vietnam’s response
The global situation is unpredictable. US tariffs hurt economic growth. They threaten supply chains and trade flows. Prime Minister Chinh said these policies affect the world economy. Vietnam has stayed calm. It has acted proactively. The country took timely steps. These have shown positive results so far.
On May 1, a Vietnamese delegation visited the US. They met with US agencies to discuss trade issues. The upcoming talks will focus on Vietnam’s rights. They aim to promote balanced trade. The talks will also ensure Vietnam’s international agreements are not harmed.
Vietnam-US trade in 2025
Vietnam’s trade with the US grew in 2025. In the first quarter, exports to the US reached $31.4 billion. This was a 22% increase from last year. Imports from the US were $4.1 billion. They rose by nearly 22% too. But US tariffs have hit Vietnam’s industries. Textiles and furniture are struggling. Domestic demand is recovering slowly.
Vietnam’s economy faces many challenges. The global landscape is changing fast. Chinh noted unprecedented developments. Vietnam’s open economy relies heavily on trade. Its internal capacity is limited. This exposes weaknesses. Economic management is under pressure. Interest rates, exchange rates, and inflation are concerns. Businesses face difficulties. Public spending remains low.
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Government’s plan to counter tariffs
Vietnam is responding flexibly. The government is closely watching global changes. It plans to issue a decree on strategic trade policy. This will guide businesses. Vietnam will increase inspections of goods’ origins. It aims to expand markets and supply chains. These steps will make Vietnamese goods and services more competitive.
Support is coming for businesses and workers. The government and ministries are preparing measures. These will help those affected by US tariffs. Vietnam wants to protect its industries. It also seeks sustainable growth.
Economic goals for 2025
Vietnam has big plans for 2025. It targets GDP growth of 8% or higher. This would push the economy past $500 billion. That would rank Vietnam 30th globally. Per capita GDP should exceed $5,000. The government aims to boost revenues by over 15%. It plans to keep the deficit at 4-4.5% of GDP if needed. Regular expenses will be cut. This will prioritize development investment.
The private sector is key. New resolutions will name it a main economic driver. Local companies will be encouraged to join global value chains. They will focus on production and supply chains. Science, technology, and innovation will lead growth. Digital transformation is a priority. The economy will be restructured with these drivers.
Vietnam’s economic performance
Last year was strong for Vietnam. In 2024, GDP grew by 7.09%. It reached $476.3 billion. This made Vietnam a top global performer. The economy climbed three spots to 32nd worldwide. Per capita GDP hit $4,700. This is close to the upper-middle-income range of $4,500-$12,000. Inflation stayed low at 3.63%.
These results show Vietnam’s strength. The country managed global challenges well. It kept growth steady. Now, it aims to build on this success. The US trade talks are a key part of that plan.
Why the talks matter
The May 7 talks are crucial. US tariffs affect Vietnam’s exports. Sectors like textiles need protection. Balanced trade will help both countries. Vietnam wants to keep its US market strong. The US is a top destination for Vietnamese goods. The talks will also ensure Vietnam follows its global agreements. This includes free trade deals.
Vietnam’s proactive approach is clear. The delegation’s US visit on May 1 set the stage. The government’s support measures show commitment. By expanding markets and supply chains, Vietnam aims to stay competitive. The focus on goods’ origins will ensure fair trade.
Conclusion
Vietnam is ready for trade talks with the US on May 7, 2025. Prime Minister Pham Minh Chinh shared the plan in the National Assembly. The US tariffs create challenges. But Vietnam is responding wisely. It sent a delegation to the US. It’s preparing support for businesses. The country aims for 8% GDP growth in 2025. It wants to reach $500 billion in economic size. Trade with the US is vital. In Q1 2025, exports hit $31.4 billion. The talks will protect Vietnam’s interests. They will promote sustainable trade. Vietnam’s economy is strong and ready for the future.
