Vietnam PM seeks new trade deals to counter US tariff impact

Vietnam's prime minister said Hanoi was pursuing new trade deals this year to mitigate the impact of tariffs imposed on its goods by the United States, its largest market.

The statement came days after estimates by the United Nations Development Programme showed US duties risked slashing by up to one-fifth of Vietnam's exports to the United States, making it the hardest-hit country in Southeast Asia.

Exports "will face difficulties and challenges ... due to strategic competition, conflicts and the US's 'reciprocal' tariff policies," Prime Minister Pham Minh Chinh said in a statement posted on the government's website on Wednesday.

He expected exports to grow more than 12% this year. Vietnam's exports in the year to September 15 rose 15.8% from a year earlier to $325.3 billion, according to government data.

To offset the impact of the US duties, Vietnam aims to sign free trade agreements with Latin America's Mercosur trading bloc and Gulf Cooperation Council countries by the end of the year, Chinh said.

He also reiterated that Vietnam would continue trade negotiations with the United States, after the Trump administration imposed a 20% tariff on most Vietnamese goods shipped to the country.

Chinh also told officials to continue cracking down on imported goods that may violate international copyright and that may have issues with their origin, according to the statement.

Both issues have been repeatedly raised by US officials as major concerns in their relations with Vietnam.

The White House has also imposed a 40% tariff on goods deemed to be transshipped through Vietnam. That could have a huge impact if Washington decides to set strict limits on foreign components used in exported items, given Vietnam's goods rely heavily on Chinese components.