Vietnam News -- The impact of the US's reciprocal tariff policy, which came into effect in August, on Southeast Asian countries is becoming apparent. Thailand's export growth has slowed down, and Vietnam's exports to the US have significantly decreased.
Thailand's export growth rate in August was 5.8%, the lowest increase since September last year; Vietnam's exports to the United States are estimated to decrease by up to one-fifth. Hanoi has stated that while continuing trade negotiations with the United States, it will seek to sign new trade agreements with other markets to maintain its target of 12% export growth for the whole year this year.
On Wednesday (September 24th), Vietnamese Prime Minister Pham Minh Chiang stated on the government's official website that strategic competition, conflicts, and the US policy of reciprocal tariffs have led to difficulties and challenges for Vietnamese exports; To offset the impact of US tariffs, Vietnam plans to sign free trade agreements with the Southern Common Market (Mercosur) and the Gulf Cooperation Council by the end of this year.
The United Nations Development Programme released its first trade volume estimate since the implementation of the US reciprocal tariff policy last week. It is estimated that Vietnam's exports to the United States may decrease by one-fifth, or equivalent to $25 billion (approximately SGD 32.1 billion), making it the most severely impacted country in Southeast Asia.
This has prompted the European Union to intend to strengthen its relationship with Vietnam. But the EU believes that Vietnam should also take more measures to meet the demands of other trading partners after making trade concessions to the United States in the face of tariff threats.
EU Trade Commissioner Sefcovic will meet with Vietnamese officials in Hanoi this Friday (26th). Two EU officials revealed that Sevkovic is expected to pressure Vietnam to lift trade barriers. Two other European officials said that the focus of the talks between the two sides will be to lift non-tariff barriers on products such as food, medicine, and automobiles.
In addition, the Thai Ministry of Commerce issued a statement stating that Thailand's exports in August increased by 5.8% year-on-year, lower than the market forecast of 9.5%, and the lowest growth rate in nearly a year, which was 11% in July.
Despite a 13.3% increase in exports in the first eight months of this year, authorities have warned that early US purchases and weak global demand may lead to a weakening of Thailand's export growth momentum in the coming months, and even negative growth.
The continued interruption of border trade, India's accelerated implementation of rice export policies, the slowdown of the US economy, and the recent sharp appreciation of the Thai baht may all bring additional pressure to Thailand's exports, "said the Director of Thailand's Office of Trade Policy and Strategy, Vinh Bang, in a statement
However, the Thai Ministry of Commerce predicts that the export volume for the whole year may still exceed the target of a 12% growth.
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