(Hanoi/Bangkok, 25th) The impact of the United States’ reciprocal tariff policy, which came into effect in August, is starting to become apparent in Southeast Asian countries: Thailand’s export growth is slowing down, and Vietnam’s exports to the US have declined sharply.
In August, Thailand’s export growth rate was 5.8%, the lowest increase since September last year; Vietnam’s exports to the US are estimated to have decreased by as much as one-fifth. Hanoi has indicated that while continuing trade negotiations with the US, it will seek to sign new trade agreements with other markets in order to maintain its full-year export growth target of 12%.
Vietnamese Prime Minister Pham Minh Chinh said in a statement on the government’s official website on Wednesday (September 24) that strategic competition, conflicts, and the US reciprocal tariff policy are causing Vietnam’s exports to face difficulties and challenges. 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 last week released the first set of trade volume estimates since the implementation of the US reciprocal tariff policy. It is estimated that Vietnam’s exports to the US may decrease by one-fifth, amounting to US$25 billion (about RM105 billion), making it the most severely impacted country in Southeast Asia.
This has prompted the European Union to consider strengthening its relationship with Vietnam. However, the EU believes that after Vietnam made trade concessions to the US in response to tariff threats, it should also take further steps to meet the demands of other trade partners.
EU Trade Commissioner Maroš Šefčovič will meet with Vietnamese officials in Hanoi this Friday (26th). Two EU officials revealed that Šefčovič is expected to put pressure on Vietnam to remove trade barriers. Another two European officials said that the focus of the discussions will be on eliminating non-tariff barriers on products such as food, pharmaceuticals, and automobiles.
In addition, Thailand’s Ministry of Commerce stated in a press release that Thailand’s exports in August grew by 5.8% year-on-year, lower than the market’s forecast of 9.5% and July’s 11%, making it the lowest increase in nearly a year.
Although the export value for the first eight months of the year grew by 13.3%, authorities warned that early procurement by the US and weak global demand may cause Thailand’s export growth momentum to slow down or even turn negative in the coming months.
Worawan, Director of the Trade Policy and Strategy Office in Thailand, said in a statement: “Continued disruption of border trade, India’s acceleration of rice export policies, the US economic slowdown, and the recent sharp appreciation of the baht may all add extra pressure to Thailand’s exports.”
Nevertheless, Thailand’s Ministry of Commerce still expects that the nation’s total export value for the year may surpass the 12% growth target.
In August, Thailand’s export growth rate was 5.8%, the lowest increase since September last year; Vietnam’s exports to the US are estimated to have decreased by as much as one-fifth. Hanoi has indicated that while continuing trade negotiations with the US, it will seek to sign new trade agreements with other markets in order to maintain its full-year export growth target of 12%.
Vietnamese Prime Minister Pham Minh Chinh said in a statement on the government’s official website on Wednesday (September 24) that strategic competition, conflicts, and the US reciprocal tariff policy are causing Vietnam’s exports to face difficulties and challenges. 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 last week released the first set of trade volume estimates since the implementation of the US reciprocal tariff policy. It is estimated that Vietnam’s exports to the US may decrease by one-fifth, amounting to US$25 billion (about RM105 billion), making it the most severely impacted country in Southeast Asia.
This has prompted the European Union to consider strengthening its relationship with Vietnam. However, the EU believes that after Vietnam made trade concessions to the US in response to tariff threats, it should also take further steps to meet the demands of other trade partners.
EU Trade Commissioner Maroš Šefčovič will meet with Vietnamese officials in Hanoi this Friday (26th). Two EU officials revealed that Šefčovič is expected to put pressure on Vietnam to remove trade barriers. Another two European officials said that the focus of the discussions will be on eliminating non-tariff barriers on products such as food, pharmaceuticals, and automobiles.
In addition, Thailand’s Ministry of Commerce stated in a press release that Thailand’s exports in August grew by 5.8% year-on-year, lower than the market’s forecast of 9.5% and July’s 11%, making it the lowest increase in nearly a year.
Although the export value for the first eight months of the year grew by 13.3%, authorities warned that early procurement by the US and weak global demand may cause Thailand’s export growth momentum to slow down or even turn negative in the coming months.
Worawan, Director of the Trade Policy and Strategy Office in Thailand, said in a statement: “Continued disruption of border trade, India’s acceleration of rice export policies, the US economic slowdown, and the recent sharp appreciation of the baht may all add extra pressure to Thailand’s exports.”
Nevertheless, Thailand’s Ministry of Commerce still expects that the nation’s total export value for the year may surpass the 12% growth target.