The ministry is gathering public feedback on a draft decree amending Decree 26/2023/ND-CP, issued on May 31, 2023, to adjust tariff rates. The proposed changes aim to harmonize and rationalize tax rates through an expedited procedure, with completion expected by March 2025.

Efforts to address trade imbalance with the US

The United States remains Vietnam's largest export market, accounting for 30% of the country’s total exports. In 2024, bilateral trade between the two countries exceeded USD 132 billion.

Vietnam’s exports to the US reached nearly USD 119 billion, up 23.3% from the same period in 2023, while imports from the US rose to USD 15 billion, up 7.3%.

This trade imbalance resulted in a US deficit of approximately USD 104 billion, over seven times the value of US imports from Vietnam.

The US has long expressed concerns over the trade deficit with Vietnam, particularly since 2019, when both countries initiated a joint action plan aimed at achieving a balanced and sustainable trade relationship.

Lowering import tariffs to boost trade fairness

The Ministry of Finance noted that most import tariffs applied by Vietnam are significantly higher than those imposed by the US. The ministry has therefore proposed reducing the Most Favored Nation (MFN) tariff on several product groups to ensure fair treatment among Vietnam’s comprehensive strategic partners.

For instance, the draft decree proposes cutting the MFN import tax on various items, including:

Automobiles (HS codes 8703.23.63, 8703.23.57, 8703.24.51): from 64% and 45% to a unified rate of 32%.
Ethanol: from 10% to 5%.
Frozen chicken thighs: from 20% to 15%.
Pistachios: from 15% to 5%.
Almonds: from 10% to 5%.
Fresh apples: from 8% to 5%.
Sweet cherries: from 10% to 5%.
Raisins: from 12% to 5%.
Wood and wood products (HS codes 44.21, 94.01, and 94.03): from 20% and 25% to 5%.
Liquefied natural gas (LNG): from 5% to 2%.
Ethane: introduced with a tax rate of 0%.
The decree will take effect upon signing.

Promoting diverse imports and consumer benefits

Nguyen Quoc Hung, Director of the Department of Tax Policy and Management (Ministry of Finance), stated that the draft decree aims to balance trade with strategic partners and encourage businesses to diversify imported goods, boosting consumer purchasing power. The revised tax rates will also help simplify procedures and make tax compliance easier.

The Ministry of Finance emphasized that the adjusted rates will not fall below those stipulated in Vietnam’s free trade agreements and will maintain consistency in tax rates for goods of similar nature to prevent commercial fraud and reduce difficulties in tax classification and calculation.

Nguyen Le