Vietnam’s Ministry of Industry and Trade (MoIT) urged fair treatment from the US regarding its review process on Vietnamese currency policies and practices to avoid damaging the bilateral relations.

Any tariffs imposed by the US on Vietnamese goods would damage bilateral relations.

The MoIT statement came shortly after Reuters reported that the US government is likely to impose tariffs on Vietnamese goods in December after branding Vietnam as currency manipulator.

“Vietnam regrets the US Trade Representative (USTR)’s decision to launch  two investigations of Vietnam under Section 301 of the Trade Act of 1974 regarding currency undervaluation and wood products at a time when the two countries’ cooperation in foreign affairs, trade, and investment is growing strongly,” stated the MoIT.

Right after the USTR move was announced, the MoIT had announced its willingness to cooperate with US counterparts during its investigation process.

A Vietnamese taskforce led by the State Bank of Vietnam (SBV), the country’s central bank, is scheduled to hold a bilateral consultation with the US at the end of December.

“Communication at this period of time is essential,” noted the MoIT.

According to the MoIT, many business association, politicians and enterprises in the US have voiced their opposition against the USTR’s investigation and any potential tariffs on Vietnamese goods, which are damaging the interests of both countries, enterprises and people.

“In case the USTR unilaterally accelerates the process of imposing more tariffs on Vietnamese exports, this will no doubt cause negative impacts not only on bilateral trading activities, but also the two countries’ relation,” urged the MoIT.

The most affected from such decision are the two countries’ business communities, manufacturers and customers, it continued.

Vietnamese enterprises would feel unsafe when doing businesses with their US peers, which could lead to a decline in imports of input materials and technologies from the US and reverse the growing trend of increasing imports from the US  that has been going for a couple of years, stated the MoIT.