Lower-cost US goods, more accessible to Vietnamese consumers

The reduction of import tariffs on US goods to 0% is expected to bring clear benefits for Vietnamese consumers, as prices for many essential items, such as milk, dietary supplements, cosmetics, machinery, and electronics, are set to drop significantly. These products, already popular due to their quality and transparency, will become even more price-competitive.

According to Dang Tran Cam Van, Director of V.E.V Le Chef Trading Production Service Co., Ltd., in addition to increased competitive pressure, the new tax policy also creates an opportunity for businesses to source US goods at lower costs. In particular, American ginseng, a product currently subject to a 5–10% tax, could become far more affordable if fully exempt from import duties, thus helping the company cut costs and bring products closer to consumers.

Businesses are willing to reduce retail prices by the full amount of the eliminated tariffs to stimulate demand. Many US-made products are increasingly favored by Vietnamese consumers, but high prices remain a barrier. Le Chef currently imports American ginseng as raw material, which is then processed into a wide range of products such as black ginseng, ginseng coconut candy, and ginseng wine. Van hopes that once tariffs are cut, consumers will have better access to these products at more attractive prices.

 “At present, the trade deficit between the US and Vietnam stands at 90%. If US goods see wider sales in Vietnam and American firms expand their imports into the market, the current 90% trade deficit could begin to narrow,” Van said.
In recent years, the direct import of US goods has been actively implemented by many supermarket chains in Vietnam. Major retailers such as AEON, Saigon Co.op, Winmart, and MM Mega Market have launched promotional campaigns and discounts on US imports while enhancing the shopping experience with after-sales services and expert product consultation.

Some observers note that while US goods have long been recognized for their quality and reliability, previous prices were high due to non-optimal import costs. If the 0% tax policy is adopted, US product prices are expected to fall sharply, drawing interest from both local consumers and the expat community.

According to Dinh Quang Khoi, Marketing Director of MM Mega Market Vietnam, if the new tariff policy is carried out, it will not only ease the entry of US goods into Vietnam but also exert positive pressure on local and other imported goods, pushing Vietnamese companies to improve quality, design, and pricing. In this context, retailers such as MM Mega Market are expected to continue strengthening partnerships with US suppliers to deliver authentic products and improved services.

Alongside import expansion, distributors and retailers are proactively negotiating to bring Vietnamese goods into the US market, aiming for sustainable trade balance. At the same time, they continue to support domestic consumption through regular promotional and consumer linkage programs.

“At a recent meeting with US industry associations, in addition to discussing direct imports from the US, MM Mega Market also raised the issue with the US Embassy regarding support for Vietnamese exports to the US market. Our goal is not only to increase imports, but also to push Vietnamese products into the US in a structured and sustainable way,” Khoi stressed.

Proactive adaptation key to success

According to Dang Phuc Nguyen, Secretary General of the Vietnam Fruit and Vegetable Association, even before the new tariff levels take effect, Vietnam has run a trade deficit in agricultural products, especially fruit with the US, nearly double the export volume to the US.

This stems from the strong reputation, consistent quality, and the suitability of US agricultural products to Vietnamese consumer tastes. If tariffs are cut to zero, imports from the US could rise sharply, potentially doubling from 2024 levels.

Source; VOV