Economic developments, especially those concerning major trading partners such as the U.S. and Chinam, will have direct impacts on Vietnam’s exports, manufacturing and business activities, he said at a meeting Wednesday.
“A global trade war will disrupt supply chains and shrink Vietnam’s export markets,” he said and urged government bodies to closely monitor the situation.
The risk of a “new global tariff war” was also highlighted in a report from the Ministry of Planning and Investment.
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Prime Minister Pham Minh Chinh speaks at a government meeting on Feb. 5, 2025. Photo courtesy of Vietnam Government Portal |
It said that this risk stems from the emergence of new factors, particularly unpredictable policies from the U.S. and reactions from other countries.
For instance, the U.S. has announced a 25% tariff on imports from Mexico and Canada, and an additional 10% tariff on Chinese goods starting Feb 4.
However, President Donald Trump later suspended tariffs on Mexico and Canada for a month, while the 10% tariff on Chinese goods remained in effect, prompting an immediate response from Beijing.
These developments have escalated the risk of a U.S.-China trade war.
Instability and conflicts continue to rise in some countries and regions. The global economy is recovering slowly and lacks stability, with many major economies continuing to cut interest rates to support growth.
These factors affect Vietnam’s economic recovery and growth, especially exports.
Vietnam’s trade turnover reached over US$63 billion in January, with a trade surplus of $1.23 billion.
However, this growth momentum may face challenges due to sluggish global demand recovery.
The Vietnamese government aims for at least 8% GDP growth this year to create momentum for double-digit growth in subsequent years.
To achieve this goal, PM Chinh suggested revitalizing traditional growth drivers such as investment, exports, and consumption.
He also proposed fostering new drivers such as green economy and innovation, and expanding export markets and supply chains.
The planning ministry advised localities and businesses to effectively leverage the opportunities from 17 signed free trade agreements.
The Ministry of Industry and Trade was tasked with quickly negotiating and concluding trade agreements with Middle Eastern countries, Switzerland, Norway, and Finland to expand new export markets.
Public investment remains a key driver for achieving high growth targets this year and in the coming period.
In January public investment disbursement rose 9.6% to VND35.4 trillion.
The planning ministry proposed accelerating disbursement progress and adding special mechanisms for large-scale projects.
Policymakers were urged to extend tax and fee exemptions and develop tax and credit policies to boost domestic consumption demand.
The PM called for the achievement of key infrastructure goals, including completing at least 3,000 km of expressways this year.
He also wants the third terminal at Tan Son Nhat International Airport in HCMC to be operational by April 30, and the first phase of Long Thanh International Airport in Dong Nai Province to be mostly completed this year.
The industry ministry was tasked with drafting a plan on the mechanisms and policies for building the Ninh Thuan nuclear power plant.
PM Chinh has also called for reducing government regular expenditures from 70% to 60% to allocate more money for key infrastructure projects to invest in an expressway connecting the China-bordering province of Lao Cai with Hanoi and the port city of Hai Phong.
