• Vietnam's PM Pham Minh Chinh expects a US trade deal before July, aiming to avoid a 46% tariff.
• Vietnam's trade surplus with the US reached $12.2 billion in May, posing pressures leading up to the tariff deadline.
• Businesses in Vietnam are struggling due to the anticipated tariffs, prompting urgency in negotiations.
• Vietnam is actively negotiating terms with the US while maintaining a delicate balance with China.
• The country is under pressure to curb illegal trans-shipment of goods from China to mitigate US concerns.

Vietnamese Prime Minister Pham Minh Chinh has expressed confidence about "positive" results from ongoing trade negotiations with the United States ahead of a looming deadline to reinstate tariffs on Vietnamese exports, set for July. Speaking at the World Economic Forum's summer meeting in Tianjin, China, he stated, "I hope that you will see that the result will come earlier than two weeks," indicating the urgency and importance of finalizing the trade deal before tariffs could severely impact Vietnamese businesses, according to SCMP and Bangkok Post.

As negotiations progress, Vietnam has seen its trade surplus with the US reach $12.2 billion in May 2023, marking a nearly 42% increase from the previous year. This surplus stems from Vietnam's significant export growth, which reached $13.8 billion over the same period, showcasing the critical importance of the US market for Vietnamese exports, according to Bangkok Post and India Times.

Local businesses are feeling the pressure from the impending tariff imposition, which is expected to increase charges on Vietnamese goods to 46%. As a result, many enterprises are struggling with declining sales and are urging the government to resolve the tariff issue swiftly. Vietnamese PM Chinh remarked about Vietnam's commitment to diversifying its relations amid these challenges while reinforcing ties with the US, according to India Times and SCMP.

Furthermore, Vietnam is navigating a delicate balance in its relations with China while pursuing trade discussions with the US. The US has previously accused Vietnam of acting as a "back door" for Chinese goods to avoid tariffs. In response, Vietnam has increased efforts to combat illegal trans-shipping, aligning its manufacturing and export practices with US expectations. This situation places complex pressures on Vietnam's economic strategy amid rising tariffs and trade scrutiny, according to India Times and Bangkok Post.