Vietnam’s benchmark stock index has dropped nearly 14% since former U.S. President Donald Trump announced new tariffs on April 2, triggering economic concerns in the Southeast Asian nation.
In response, Prime Minister Pham Minh Chinh said Vietnam is prepared to increase purchases of American goods—including defense and security products—and has formally requested a 45-day delay in the tariff implementation to allow for negotiations.
Chinh made the comments during a cabinet meeting late Monday, noting that Hanoi also seeks expedited delivery of commercial aircraft ordered from the U.S. by Vietnamese airlines. The U.S. is Vietnam’s largest export market, with a trade surplus exceeding $123 billion last year.
The U.S. tariffs, announced by Trump last week at a steep 46% rate, have rattled Vietnam’s financial markets. On Tuesday morning, the country’s main stock index slid 6.26% to 1,135.
Chinh emphasized Vietnam’s willingness to engage in talks for a “balanced and sustainable” trade relationship that benefits both nations. The government will also review policies related to monetary management, exchange rates, non-tariff barriers, and the verification of goods’ origin.
Meanwhile, Trump and Vietnamese President To Lam held a phone call on Friday, where they reportedly agreed to work toward a deal to lift the tariffs. Trump described the conversation as “very productive.”
Although the U.S. lifted its arms embargo on Vietnam in 2016, defense exports have remained modest, mostly comprising coastguard vessels and training aircraft. However, sources say there have been recent discussions about selling Lockheed Martin C-130 Hercules military transport planes to Hanoi.
(Source)