He was speaking Monday in the National Assembly, alluding to the complex and unpredictable global situation, particularly the U.S.’s high "reciprocal" tariffs, which it has deferred for 90 days for trade partners (except China) with a temporary 10% rate.

Prime Minister Pham Minh Chinh speaks at a National Assembly session on May 5, 2025.

The policy has negatively affected global economic growth, threatening supply chains and international trade and investment flows, he said.

Vietnam has remained calm, proactive, and flexible, implementing timely measures in response that have yielded positive results thus far, he said.

On May 1 a Vietnamese delegation has visited the U.S. to engage with relevant agencies on trade.

The PM said the upcoming negotiations would focus on protecting Vietnam’s legitimate rights and interests, promoting balanced and sustainable trade and ensuring there are no impacts on Vietnam’s international agreements.

Vietnam’s exports to the U.S. in the first quarter were worth US$31.4 billion, a 22% year-on-year jump, while imports rose by almost the same rate to $4.1 billion.

But since then the U.S.’s tariffs have hit sectors in Vietnam like textiles and furniture even as domestic demand recovers slowly.

Vietnam’s economy continues to face challenges on several fronts, especially due to the rapidly changing global landscape with unprecedented developments, Chinh said.

The country’s highly open economy, coupled with limited internal capacity, has exposed its longstanding weaknesses, he admitted.

"The pressure on economic management remains high, especially in areas like interest rates, exchange rates and inflation. Production and business activities face many difficulties, and public spending remains low."

To counter the tariffs’ impacts, the government is closely monitoring developments and responding flexibly. It plans to soon issue a decree on strategic trade policy and increase inspections of goods’ origins and efforts to expand markets and supply chains to enhance the competitiveness of the country’s goods and services.

The government and ministries are working on quickly rolling out support measures for businesses and workers affected by the tariffs. Vietnam targets GDP growth of 8% or higher in 2025 so that the economy surpasses $500 billion (ranking 30th globally) and per capita GDP exceeds $5,000.

The government seeks to boost its revenues by over 15%, keep the deficit at 4-4.5% of GDP if needed and cut regular expenses to prioritize development investment.

It plans to pass Politburo and National Assembly resolutions that designate the private sector as a key economic driver and encourage local companies to engage deeply in the global value, production and supply chains, he said.

"The economy will be restructured based on a new model, with science, technology, innovation, and digital transformation as the main drivers."

Last year Vietnam’s GDP grew by 7.09% to $476.3 billion, making it among the world’s top performers. This raised its economic ranking by three places to 32nd globally.

Per capita GDP hit $4,700, close to the upper-middle-income threshold ($4,500-$12,000), and inflation was kept down to 3.63%.