Vietnam faces more challenges than opportunities because of U.S. tariffs but will still aim to meet its target of at least 8% growth this year, the Prime Minister said on Monday, ahead of the start of trade talks with Washington later this week. The Southeast Asian economy, which is heavily reliant on exports for growth, is facing a 46% tariff if a reduction cannot be negotiated before a U.S. moratorium expires in July.

"We have stayed calm and courageous and taken several appropriate measures," Pham Minh Chinh told parliament.

"Vietnam is among the first countries the U.S. has agreed to hold tariff negotiations with," he said, adding the first negotiation session will take place on Wednesday.

"The government has been closely working with the negotiation team, and related agencies to urgently complete a plan to be ready for negotiations with the United States," he said.

Chinh said the U.S. tariffs are threatening global supply chains and the global economy. Vietnam, a major regional manufacturing base for many Western companies, last year had a trade surplus with the U.S. of more than $123 billion.

"We are facing more challenges than opportunities this year," he said, adding the trade war also offered opportunities for the country to restructure its economy.

Chinh said Vietnam will seek to boost its exports to 17 markets that it has signed free trade agreements with.

Vietnam will also seek to boost consumption and ramp up public investment to upgrade its infrastructure this year, including starting work on a multi-billion dollar railway line linking its Haiphong port with China.

In recent years, Vietnam has faced power shortages that hit factories and families in northern provinces during heatwaves.

"We won't let power shortages happen this year, in any circumstances," Chinh said.

Source: Reuters

• USTR Makes Findings and Proposes Action in 60 Section 301 Investigations Relating to Failures to Take Action on Trade in Forced Labor Goods
• [VCCI] The US officially initiates a Section 301 Investigation into Vietnam on Intellectual property
• General Secretary and President To Lam's working visit to three ASEAN countries: Demonstrating the stature of proactive and constructive diplomacy.
• Viet Nam accelerates innovation drive as skilled workforce becomes key to science and technology growth
• The US is increasing controls on AI chip exports