HANO: Vietnam is seeking to speed up its negotiations for new free trade agreements while more effectively exploiting the 17 ones it has already signed, as its export-reliant economy is bracing for U.S. tariffs.
Prime Minister Pham Minh Chinh, in a directive issued late on Tuesday, urged the trade ministry to conclude or start free trade agreement talks with India, Brazil, Pakistan, Egypt and other markets in the Middle East, Africa, Latin America, Central Asia and Eastern Europe.
The Southeast Asian industrial hub has been slapped by the Trump administration with 46% “reciprocal” tariffs, currently paused until July, which if applied could undermine a growth model that relies on exports to the United States, its top market, and large investments by foreign manufacturers. It recently instructed officials to combat trade fraud, counterfeiting and other issues of concern for the United States as the country readied to start talks with Washington on tariffs,
Vietnam has signed 17 bilateral or multilateral free trade agreements, including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership and Regional Comprehensive Economic Partnership Agreement, plus pacts with the European Union, Japan and South Korea. It has no free trade deal with the United States.
In the directive, which was issued to government agencies and city and provincial authorities, Chinh repeated that Vietnam would stick to its gross domestic product growth target of at least 8% for this year through taking numerous other measures, despite the looming tariffs.
“Since the beginning of 2025, the world situation has seen many new, complicated, and unpredictable developments, with more intense strategic competition among major countries, widespread trade wars, and declining world economic prospects, posing many difficulties and challenges” the directive said.
Chinh also urged the central bank to ensure sufficient funding for economic growth, while maintaining the safety for the foreign exchange and gold markets and for the banking system.
He also told the central bank to boost lending to people under the age of 35 to buy homes and offer soft loans to firms most affected by the U.S. tariffs.
Other measures include ramping up infrastructure development, spurring domestic consumption and boosting investment in digital transformation and technologies, according to the directive.
Chinh told the trade ministry to encourage e-commerce platforms to implement preferential policies to promote the consumption of domestically produced goods and local products and facilitate the deliveries of items even to remote areas.
