Vietnam going all-out to avoid US tariffs
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Vietnam going all-out to avoid US tariffs

PM pledges quick licensing for Musk-owned Starlink, more imports from US

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A gantry crane lowers a shipping container onto a trailer at the Hai Phong port in northern Vietnam. (Photo: Reuters)
A gantry crane lowers a shipping container onto a trailer at the Hai Phong port in northern Vietnam. (Photo: Reuters)

HANOI - Vietnamese Prime Minister Pham Minh Chinh said on Saturday that his government wanted to rapidly issue a licence for Elon Musk’s Starlink to provide satellite internet in the country under a pilot programme.

Speaking with representatives from nearly 40 US businesses in Hanoi, Chinh also said that Vietnam was taking measures to rebalance its trade surplus with the United States, citing potential imports of aircraft, arms, liquefied natural gas, agricultural goods and pharmaceutical products.

Hanoi is trying to avoid US duties on its ballooning exports, which contributed to a record trade surplus last year, making the country vulnerable to reciprocal tariffs threatened by President Donald Trump starting in April.

“The PM has directed the Ministry of Science and Technology to quickly issue a licence to Starlink internet (services) on a trial basis,” the government said on its website, reporting on the discussions Chinh had with the US businesses.

In February the Vietnamese parliament approved a temporary scheme to allow satellite internet companies to provide services in Vietnam while retaining full control on their local subsidiary — a precondition set by Musk, Trump’s biggest financial backer and now his right-hand man in Washington.

That represented a sudden shift in Vietnam’s stance about ownership of satellite internet providers, as the Communist-run country maintains strict limits on foreign control for multiple economic sectors it considers sensitive.

A US official who attended Saturday’s meeting said the discussion “will hopefully solve some pending issues” for US companies in Vietnam.

Chinh is planning separate meetings with other foreign businesses in the coming days, multiple investors told Reuters, as he tries to quell concerns caused by global trade tensions and the impact they could have on the export-reliant country. (Story continues below)

Vietnamese Prime Minister Pham Minh Chinh attends a session at the Asean Summit in Vientiane, Laos on Oct 9, 2024. (Photo: Reuters)

Vietnamese Prime Minister Pham Minh Chinh attends a session at the Asean Summit in Vientiane, Laos on Oct 9, 2024. (Photo: Reuters)

Import deals?

Among the possible measures that could reduce Vietnam’s commercial surplus with the United States are massive purchases by Vietnamese airlines of Boeing planes, the government said.

It cited a deal the flag carrier Vietnam Airlines struck with Boeing in 2023 during a visit to Hanoi of former president Joe Biden for the purchase of 50 737 Max jets.

Vietnam’s government reported on Saturday the deal was worth $11 billion, without clarifying whether it included engines and other parts usually bought separately. The White House had said in 2023 the value was $7.8 billion.

Vietnam Airlines did not immediately reply to a request for comment on Saturday.

The government said Vietnam was discussing possible lower prices for the planes with Boeing and also mentioned the deal Vietnamese low-cost airline VietJet has to buy 200 Boeing 737 Max jets.

The deal was first signed in 2016 and revised afterwards, but no plane has yet been delivered although the company had said it expected to receive the first jets last year.

The government and Vietnamese officials have cited for weeks multiple measures to address the trade surplus with the US but no major deals have yet been announced.

The government has said it could import more US farm products, and officials have repeatedly expressed interest in buying US liquefied natural gas for the country’s fledgling LNG industry.

Military deals have also been frequently discussed, including the purchase of Lockheed Martin C-130 Hercules military transport planes.

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