HCMC – Vietnam has reduced its Most-Favored-Nation (MFN) import tariffs on automobiles, furniture, and agricultural products, with effect from March 31.
The Government has issued Decree 73/2025 amending the preferential import tariff schedule outlined in Decree 26/2023. Tariffs on four-wheel-drive SUVs and sedans with engine capacity between 2,000 to 2,500 cubic centimeters (cc) have been lowered to 50% from 64%. Other four-wheel-drive vehicles in the same category are now subject to a 32% tariff, down from 45%.
The import tariff on ethanol has been lowered from 10% to 5%.
Frozen chicken thighs now come with a 15% tariff, down from 20%. Pistachios and almonds will be taxed at 5%, compared to the previous rates of 15% and 10%. Fresh apples and cherries now have a 5% tariff, down from 8% and 10%, respectively. The tariff on raisins has also been cut from 12% to 5%.
Tariffs on wooden products, including chairs, coat hangers, and other furniture, have been eliminated, down from the previous range of 20-25%. The tariff on liquefied natural gas (LNG) has been reduced from 5% to 2%, while ethane imports now enjoy a zero percent tariff under a newly assigned HS code.
Corn and soybean meal tariffs have also been removed, reduced from 2% and 1-2%, respectively.
The Ministry of Finance estimated a US$8.81 million reduction in state budget revenue from the tariff adjustments, based on 2024 import volumes. However, the actual revenue loss could be lower if imports from ASEAN countries, which benefit from preferential trade agreements, remain stable.
The tariff cuts aim to mitigate global economic uncertainties, stabilize inflation, and improve the trade balance. The Government also hopes to reduce import costs and stimulate domestic consumption.
Vietnam has comprehensive strategic partnerships with 12 countries, 11 of which have free trade agreements (FTAs) with the country. The U.S., which does not have an FTA with Vietnam, remains subject to MFN tariffs under World Trade Organization rules.
The revised tariff policy is part of Vietnam’s broader efforts to enhance economic resilience and foster international trade relations.
