HANOI — Vietnam’s finance ministry has put forward a proposal to cut preferential import tariffs on a range of products including liquefied natural gas (LNG), cars, wood and agricultural products, as the nation seeks to avoid the imminent threat of US tariffs.
Under the changes, tariffs on some types of cars are set to be cut to 32% from a range of 45% to 64%, the tax on LNG will be reduced to 2% from 5% and ethanol will see a cut to 5% from 10%. Agricultural goods including apples, frozen chicken, almonds and sweet cherries will also see a reduction, according to a statement on the ministry's website, citing Nguyen Quoc Hung, director of tax management and supervision unit.
The draft regulatory changes are "to navigate the complex and unpredictable developments in the global geopolitical and economic situation," with tariff policies "significantly" affecting world economies including Vietnam, the statement said.
Vietnam has been seeking to shore up trade ties with the United States and convince the Donald Trump administration it is serious about addressing its trade surplus, which widened to US$123.5 billion last year, giving it the third-highest trade gap with the US, behind China and Mexico.
Vietnam announced provisional deals with US companies worth $4.15 billion during a visit by the trade minister to the US earlier this month, and said it was considering removing trade barriers and cracking down on export fraud to improve trade relations with the US.
The revised decree on the most favoured nation tariff adjustments is expected to be issued within this month, according to the ministry statement.
