Near a trade agreement allegedly Vietnam and the USA, which will predict that the products will be imposed gradually duties Depending on the percentage of foreign content, according to Bloomberg.
Exports to the US containing The highest percentage of foreign ingredients will be burdened with the maximum of the duty range, about 20% or more, according to the same sources. Products containing a lower percentage of foreign ingredients will determine slightly reduced rate, while those entirely from Vietnam will face the lowest rate – possibly the existing 10%universal contribution, people said. The details continue to be discussed and they could still change.
Vietnam has been involved in weeks of intense diplomacy with the US, its largest export market, during which the US pressed Hanoi to become stricter in commercial fraud and make more to prevent the re -route and reconstruction of Chinese products through Vietnam.
Prime Minister Pham Minh Chinh said last week that he is expecting to see “positive results” from negotiations with the US earlier than the July 9th deadline, when the so -called 46%reciprocal tax rate is to be put into force. Chinh also said that the country must balance relations with the US and China, its two most important commercial partners, stressing the challenge facing the country’s leadership.
Even a milder levy will create significant challenges for exporters, including tackling more stricter commercial protection and research requirements, according to Can Van Luc, a member of the National Financial and Monetary Policy Advisory Council.
“If duties are 10%-15%, then about $ 25 billion should be paid, but it will probably have a minimal impact,” LUC said. Vietnam depends largely on China for the raw materials necessary to maintain processing -based growth growth. China represented about 38% of Vietnam’s total imports last year, according to customs data. During the first five months of the year, imports from China reached $ 69.4 billion, making it the country’s largest source for species such as computer components and electrical components, machinery and fabrics.
The state of Southeast Asia has been offered to abolish all duties and has repeatedly promised to buy more US products. Senior Vietnamese officials have flown to the US to collect support and sign billions of dollars. The Minister of Commerce attracts Nike Inc. executives, Gap Inc. and other companies for which Vietnam is a crucial hub, producing goods from t -shirts to basketball shoes.
Industrial shift from China to Vietnam in the last decade, which saw the brands rush to relocate as commercial tensions have increased, has also contributed to the creation of the kind of huge commercial divide that made it a primary target. Last year, Vietnam’s trade surplus with the US was the third largest in the world at the world, behind China and Mexico.
In a sign of how much they depend on a pact, the leader of the Communist Party LAM is preparing to travel to the US in the coming weeks with a delegation of Vietnamese officials and business executives, as the nation seeks to close more US market agreements.