Latest news with #FrancescoGuarascio
Yahoo
3 days ago
- Business
- Yahoo
Exclusive-US made 'tough' requests to Vietnam in trade talks, sources say
By Francesco Guarascio and Phuong Nguyen HANOI (Reuters) -The U.S. has sent a "long" list of "tough" requests to Vietnam in its tariff negotiations, including demands that could force the country to cut its reliance on Chinese industrial goods imports, two people briefed about the matter told Reuters. Washington wants Vietnam-based factories to reduce their use of materials and components from China and is asking the country to control more carefully its production and supply chains, one of the people briefed on the talks said, without elaborating on whether quantitative targets were included. The list is part of an "annex" to a framework text prepared by U.S. negotiators, according to four people familiar with the matter. One of them, who had direct access to the document, said the list was sent to Hanoi at the end of May after the conclusion of a second round of talks with Washington aimed at avoiding 46% "reciprocal" tariffs on imports from Vietnam. The sources declined to be named because those discussions were not public. Reuters reported on Monday that the Trump administration wants countries to provide their best offers on trade negotiations by Wednesday, citing a draft letter to negotiating partners. It was unclear which countries would receive the letter, but it was directed at those with active negotiations that included meetings and exchanges of documents. Washington has been engaged in such talks with countries including Vietnam, the European Union, Japan and India. The sources described the U.S. requests to Vietnam as "tough" and "difficult". It is unclear how Hanoi will respond to Washington's requests and whether it will send its own proposal by Wednesday. The U.S. Trade Representative did not respond to a request for comment outside U.S. business hours. Vietnam's trade ministry did not reply to a request for comment. A source briefed on the matter said if U.S. requests to effectively cut Vietnam's reliance on China were met, they could pose a serious challenge to the Southeast Asian country's economy. Its sprawling manufacturing industry, which produces consumer goods including Apple devices and Nike shoes, is closely integrated into its much bigger neighbour's supply chains. It might also complicate Vietnam's long-standing policy of maintaining good relations with China, a major foreign investor but also a source of security concerns due to conflicting claims in the South China Sea. BOOMING TRADE Vietnam has nearly tripled its exports to the United States since the start of the U.S.-China trade war in 2018, when the first Trump administration imposed wide-ranging tariffs on Beijing, pushing some manufacturers to move production south. But as exports to the U.S. boomed, Vietnam also vastly expanded imports from China, with their inflow almost exactly matching the value and swings of exports to the United States over the years, each totalling around $140 billion in 2024, data from the U.S. and Vietnam show. U.S. officials have long accused Vietnam of being used as a waypoint for Chinese goods destined for the United States. At times, according to the allegations, goods had "Made in Vietnam" labels despite having received no or insufficient added value in the country - allowing Chinese exporters to avoid high U.S. duties on their goods. Aware of the U.S. criticism, Hanoi has launched a crackdown on illegal transhipment of goods. The effect has yet to be seen in trade flows, however, as exports to the United States and imports from China both reached a record high in April, according to the latest data. Vietnam has also repeatedly shown its willingness to reduce non-tariff barriers and to import more U.S. goods, in line with long-standing requests from Washington. In recent weeks, officials have reiterated plans to buy U.S. planes and have signed or pledged multiple non-binding agreements, including on the purchase of farm products and energy. That may, however, not be enough, as U.S. negotiators seek real contracts, one of the people said.
Yahoo
3 days ago
- Business
- Yahoo
Exclusive-US made 'tough' requests to Vietnam in trade talks, sources say
By Francesco Guarascio and Phuong Nguyen HANOI (Reuters) -The U.S. has sent a "long" list of "tough" requests to Vietnam in its tariff negotiations, including demands that could force the country to cut its reliance on Chinese industrial goods imports, two people briefed about the matter told Reuters. Washington wants Vietnam-based factories to reduce their use of materials and components from China and is asking the country to control more carefully its production and supply chains, one of the people briefed on the talks said, without elaborating on whether quantitative targets were included. The list is part of an "annex" to a framework text prepared by U.S. negotiators, according to four people familiar with the matter. One of them, who had direct access to the document, said the list was sent to Hanoi at the end of May after the conclusion of a second round of talks with Washington aimed at avoiding 46% "reciprocal" tariffs on imports from Vietnam. The sources declined to be named because those discussions were not public. Reuters reported on Monday that the Trump administration wants countries to provide their best offers on trade negotiations by Wednesday, citing a draft letter to negotiating partners. It was unclear which countries would receive the letter, but it was directed at those with active negotiations that included meetings and exchanges of documents. Washington has been engaged in such talks with countries including Vietnam, the European Union, Japan and India. The sources described the U.S. requests to Vietnam as "tough" and "difficult". It is unclear how Hanoi will respond to Washington's requests and whether it will send its own proposal by Wednesday. The U.S. Trade Representative did not respond to a request for comment outside U.S. business hours. Vietnam's trade ministry did not reply to a request for comment. A source briefed on the matter said if U.S. requests to effectively cut Vietnam's reliance on China were met, they could pose a serious challenge to the Southeast Asian country's economy. Its sprawling manufacturing industry, which produces consumer goods including Apple devices and Nike shoes, is closely integrated into its much bigger neighbour's supply chains. It might also complicate Vietnam's long-standing policy of maintaining good relations with China, a major foreign investor but also a source of security concerns due to conflicting claims in the South China Sea. BOOMING TRADE Vietnam has nearly tripled its exports to the United States since the start of the U.S.-China trade war in 2018, when the first Trump administration imposed wide-ranging tariffs on Beijing, pushing some manufacturers to move production south. But as exports to the U.S. boomed, Vietnam also vastly expanded imports from China, with their inflow almost exactly matching the value and swings of exports to the United States over the years, each totalling around $140 billion in 2024, data from the U.S. and Vietnam show. U.S. officials have long accused Vietnam of being used as a waypoint for Chinese goods destined for the United States. At times, according to the allegations, goods had "Made in Vietnam" labels despite having received no or insufficient added value in the country - allowing Chinese exporters to avoid high U.S. duties on their goods. Aware of the U.S. criticism, Hanoi has launched a crackdown on illegal transhipment of goods. The effect has yet to be seen in trade flows, however, as exports to the United States and imports from China both reached a record high in April, according to the latest data. Vietnam has also repeatedly shown its willingness to reduce non-tariff barriers and to import more U.S. goods, in line with long-standing requests from Washington. In recent weeks, officials have reiterated plans to buy U.S. planes and have signed or pledged multiple non-binding agreements, including on the purchase of farm products and energy. That may, however, not be enough, as U.S. negotiators seek real contracts, one of the people said. Sign in to access your portfolio
Yahoo
26-05-2025
- Business
- Yahoo
France, Vietnam set to sign dozens of deals as Macron visits Hanoi
By Francesco Guarascio and Phuong Nguyen HANOI (Reuters) -France and Vietnam are set to sign dozens of deals on Monday when French President Emmanuel Macron meets Vietnamese leaders in Hanoi as he seeks to increase France's influence in the former colony, which faces threats of high U.S. tariffs. In his first formal visit to the country, and the first for a French president in nearly a decade, Macron will be accompanied by more than a dozen business executives, said an official with knowledge of the matter, and is expected to oversee the signing of possibly 30 agreements while trying to boost cooperation in multiple sectors, including aviation, nuclear energy, railways, renewables, research, satellites and defence. Macron's long-planned trip to Vietnam, the first leg of a larger Southeast Asian tour including Indonesia and Singapore, comes on the heels of U.S. President Donald Trump's threats on Friday to impose 50% duties on EU goods from June, critically escalating trade tensions with the 27-country bloc. As export-dependent Vietnam is also under pressure from Washington to buy more American goods to avoid 46% duties, European officials before Macron's visit have told the country to be careful in its concessions to the White House, two officials based in Vietnam with knowledge of the discussions told Reuters. In talks with the United States, "Vietnam should make sure not to make decisions at the expense of European interests," one of the officials said, noting Vietnamese leaders had been told this could jeopardise close relations with the EU, which has a free trade deal with Vietnam and is a major buyer of its goods. It is not clear whether Macron will emphasise that message on Monday as that may depend on the deals France will strike. AIRBUS There could be progress on a deal between Vietnam's low-cost airline VietJet and European planemaker Airbus, two sources familiar with the discussions said. That would follow a provisional agreement signed last year for the delivery of 20 A330neo wide-body airliners. "We don't comment on discussions we may or may not be having with airlines," an Airbus spokesperson said. Macron's Elysee presidential office had previously confirmed dozens of deals were expected, but did not respond to a request for comment on planes and Macron's messaging about U.S. concessions. Vietnam's foreign ministry and VietJet did not reply to requests for comment. Talks on satellites, including from Airbus, are also at an advanced stage, officials have said. Vietnam, whose economy is heavily dependent on exports to the U.S., has made multiple pledges in trade talks with Washington to avoid tariffs that could undermine its growth model. One frequently flagged offer has been the possible purchase of at least 250 Boeing planes by flag carrier Vietnam Airlines and rival VietJet, which Vietnamese and U.S. officials have said would help reduce the country's huge trade surplus with the U.S. and possibly appease Trump. European officials are worried Airbus may lose out from these possible deals, said three sources with knowledge of the concerns. The planemaker is the main supplier of jets to Vietnam, with its aircraft making up 86% of the planes currently operated by Vietnamese airlines, according to data from Cirium, an aviation analytics company.
Yahoo
23-05-2025
- Politics
- Yahoo
Vietnam orders messaging app Telegram to be blocked, government document shows
By Francesco Guarascio and Phuong Nguyen HANOI (Reuters) -Vietnam's technology ministry has instructed telecommunication service providers to block the messaging app Telegram for not cooperating in combating alleged crimes committed by its users, according to a government document reviewed by Reuters. The document, dated May 21 and signed by the deputy head of the telecom department at the technology ministry, ordered telecommunication companies to take measures to block Telegram and report on them to the ministry by June 2. The ministry asked telecommunication service providers "to deploy solutions and measures to prevent Telegram's activities in Vietnam". The document said the ministry was acting on behalf of the country's cyber-security department after police reported that 68% of the 9,600 Telegram channels and groups in the country violated the law, citing fraud, drug trafficking and "cases suspected of being related to terrorism" among the illegal activities carried out through the app. A technology ministry official confirmed to Reuters the authenticity of the document, noting the move follows Telegram's failure to share user data with the government when asked as part of criminal investigations. Telegram and Vietnam's technology ministry did not immediately reply to requests for comment. The Vietnamese police and state news outlets have repeatedly warned people of possible crime, frauds and data breaches on Telegram channels and groups. Telegram, which competes globally with other social media apps such as Facebook's WhatsApp and WeChat, was still available in Vietnam on Friday. Vietnam's ruling Communist Party maintains tight media censorship and tolerates little dissent. The country has repeatedly asked companies like Facebook, Google's YouTube and TikTok to coordinate with authorities to stamp out content deemed "toxic", including offensive, false and anti-state content. Telegram is accused of not applying laws that require social media to monitor, remove and block information that violate the law, according to the document. Also, the document said that according to information from the police, "many groups with tens of thousands of participants were created by opposition and reactionary subjects spreading anti-government documents". The free-to-use platform with close to one billion users worldwide has been involved in controversies across the world on security and data breach concerns, including in France where its founder Pavel Durov was briefly detained last year. France's President Emmanuel Macron is set to visit Vietnam from Sunday.
Yahoo
15-05-2025
- Business
- Yahoo
Exclusive-Shein to set up huge Vietnam warehouse in US tariff hedge, sources say
By Francesco Guarascio and Casey Hall HANOI/SHANGHAI (Reuters) -Fast-fashion online retailer Shein is leasing a huge warehouse in Vietnam, two people familiar with the deal told Reuters, its first in the country, in a move that could reduce its exposure to unpredictable U.S.-China trade tensions. Shein, which was founded in China and sells products including $5 bike shorts and $18 sundresses, has agreed to lease nearly 15 hectares of industrial land for a warehouse near Ho Chi Minh City, Vietnam's commercial and trading hub, the two sources said, declining to be identified because the information was not public. The online retailer, which almost entirely relies on China-based suppliers to make garments for the United States and other markets, has been caught in the crosshairs of a tit-for-tat China-U.S. trade war that threatens to upend global supply chains, despite a recent de-escalation. One of the sources and a third person said Shein had been looking to rent more storage space in Southern Vietnam in addition to the large warehouse - equivalent to about 26 football pitches - which would store clothing and apparel from contractors before export. Reuters could not establish where products housed in the leased warehouse would come from. The retailer has previously flagged plans to source some products from Turkey and Brazil, and Shein suppliers from its traditional production base in southern China have told Reuters they are losing orders to Vietnam as some Chinese manufacturers opened factories there. Shein, which is seeking a London listing, did not respond to questions from Reuters about the leasing of the warehouse space. It had previously denied it was shifting production capacity out of China. The area around Ho Chi Minh City hosts an international airport, Vietnam's largest port for imports from China and another port that handles most seaborne exports to the United States. Under a U.S. threat of punitive tariffs, Vietnam is cracking down on some imports from China, which Washington has said have for long been illegally rerouted through Vietnam to the United States to avoid higher duties. Reuters had no access to the details of the warehouse lease and could not establish whether Shein would be able to revise its plans should U.S.-China trade tensions de-escalate further, reducing the appeal of diversification overseas. Given the ongoing instability of the situation, however, analysts say Shein has little choice but to reduce its reliance on China. "It would be dangerous for them not to diversify," said Manish Kapoor, CEO and founder of e-commerce supply chain solutions firm Growth Catalyst Group. ARMY OF SUPPLIERS The fashion giant has built in China a formidable army of suppliers who can turn out crop tops and other fast fashion for a few yuan apiece to feed demand for cheap clothing from Gen Z consumers around the world. Shein has said it is expanding its network of contractors in China and is also investing 10 billion yuan ($1.37 billion) in industrial projects in the south of the country, including a $500 million supply chain hub near Guangzhou. The first phase of that hub, currently under construction, will span about 49 hectares, around the size of Vatican City. Shein became a behemoth selling more than $30 billion worth of goods annually on a foundation of cheap prices and advantageous trade rules, such as the U.S. "de minimis" exemption that allowed duty-free entry for low-cost imports worth $800 or less. The Trump administration scrapped that exemption for Chinese products on May 2, effectively exposing Shein's packages to a levy of 120%, before the U.S. agreement with Beijing earlier this week reduced the duties to 54% on parcels worth $800 or less, and to 30% for low-value commercial shipments. The U.S.-China thaw has caused concern in countries benefiting from those tensions, but current U.S. levies on Beijing keep Vietnam competitive as shipments from China's neighbour still enjoy duty-free treatment if they are worth $800 or below. The reprieve could be short-lived, however. Kapoor says he is advising clients not to rely on drop-shipping "de minimis" imports from anywhere as a core part of their logistics strategy. "We're advising people to expect that this "de minimis" exemption could be gone completely [before long]," he said. Vietnam's other exports to the U.S. face a 10% tariff until July when the levy would rise to 46% if Hanoi does not otherwise reach an agreement with the White House. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
