Accompanying and supporting businesses to overcome difficulties

Yesterday afternoon (April 10), Mr. Bui Minh Tri, Vice Chairman of the Binh Duong Provincial People's Committee, chaired a meeting to hear reports from various sectors assessing the impact of the expected US reciprocal import tax policy on Vietnamese goods. The meeting focused on how this policy might affect the operations of enterprises in the province. Additionally, participants discussed recommendations from businesses on how to jointly overcome challenges and find solutions to adapt to market fluctuations.

Restructure production and customers

At the meeting, Mr. Nguyen Liem, President of the Binh Duong Furniture Association (BIFA), stated that the U.S. Government's announcement of a reciprocal tax rate of up to 46% on Vietnamese goods poses a significant challenge for the wood export industry. This is particularly concerning as the U.S. market constitutes a substantial portion of the country's overall wood export revenue, especially for Binh Duong province. “The wood industry has advised the Government on maximum capacity to import materials from the United States and has proposed an acceptable tax rate when entering the US market of 20%. To maintain the largest export market of the wood industry, we propose that there should be a trade dialogue solution to propose a direction to minimize risks," said Mr. Nguyen Liem. 

According to Mr. Phan Thanh Duc, Vice President of Binh Duong Textile and Garment Association, this is the time to have a fundamental solution after negotiations with US customers. In the short term, the textile garment industry will have to restructure customers and rearrange production. In the long term, if the source of raw materials originating from the United States accounts for more than 20%, there will be no reciprocal tariff. 

However, for businesses producing jeans, the United States is the key market. For the domestic market, Mr. Phan Thanh Duc hopes that competent will support and create favorable conditions for businesses to overcome difficulties. Mr. Nguyen Chi Toan, Marketing Director of Vietnam - Singapore Industrial Park Joint Venture Company (VSIP Company), said that when there was information that the US Government would impose a 46% reciprocal tax on Vietnamese goods, the business community in the industrial park was very worried. 

However, VSIP Company informs businesses that conditions are expected to improve as the government has taken proactive and timely measures. The situation has also stabilized to some degree. Additionally, enterprises are making efforts to diversify their import and export markets. Meanwhile, Mr. Kim Huyn Ho, General Director of Kumho Tire Vietnam Co., Ltd. (Ben Cat City), said that the company's revenue reaches about 900 million USD/year, of which 80% of products are exported to the US market. The company hopes that the Vietnamese Government will continue to negotiate and create favorable conditions for businesses and recommends that Binh Duong province support businesses in administrative procedures to overcome current difficulties... 

Mr. Xu Mei Jun, General Director of Motomotion Vietnam Co., Ltd. in Ben Cat City, stated that the company has been investing in Binh Duong since 2018, with an average annual revenue of 7,600 billion VND. He expressed concerns that if the U.S. government imposes a 46% reciprocal tax, businesses will face significant challenges. To address this, the company recommends providing procedural support for foreign experts to come to Vietnam to train local staff, enhance skills, and boost labor productivity for businesses.

Work together to overcome difficulties 

Mr. Nguyen Thanh Binh, Deputy Head of Regional Customs Branch XVI, informed that the urgency regarding the reciprocal tax issues faced by businesses in the U.S. market has decreased. As of the morning of April 10, statistics indicate that 31 enterprises in the province have had their orders canceled, while the customs agency has revoked 88 declarations in accordance with regulations.

The XVI Region Customs Branch recommends that the customs sector continue to create the most favorable conditions for businesses to carry out customs procedures, specifically reducing or exempting the rate of physical inspection of goods, switching to container scanners to help businesses shorten the time for customs clearance of goods; for tax refund dossiers, businesses conduct quick inspections or refund first, check later so that businesses have capital to maintain operations...

"The XVI Region Customs Branch is committed to supporting businesses by proactively implementing various solutions. Specifically, the department has established teams to visit local businesses that export goods to the U.S. market. These teams aim to understand the challenges and difficulties that businesses face during the export process. Based on this information, the department will compile recommendations and take appropriate actions within its authority to create the most favorable conditions for businesses," Mr. Nguyen Thanh Binh emphasized. 

Mr. Ha Van Ut, Director of Provincial Department of Industry and Trade, said that the industry and trade sector is focusing on supporting businesses to implement trade promotion programs for the US market; advising the Provincial People's Committee to establish a provincial Trade Defense Steering Committee; effectively implementing international economic integration and diversifying export markets. 

The industry and trade sector also promotes the swift development of supporting industries and raw material centers that serve industrial production, ensuring compliance with regulations on the localization rate of exported goods. Additionally, it works closely with the Ministry of Industry and Trade to implement proactive solutions that respond to and adapt flexibly to the risks of escalating trade wars in the future.

Concluding the meeting, Mr. Bui Minh Tri, Vice Chairman of Provincial People's Committee, emphasized that Binh Duong is actively working to develop solutions that support businesses in achieving sustainable growth while navigating the challenges posed by reciprocating tariffs in the US market. Enterprises are encouraged to be proactive and flexible in their production and business operations. It is essential for them to remain calm, stay informed, and engage in timely negotiations with partners to make the best decisions in a rapidly changing market.

Reported by Tieu My - Translated by Ngoc Huynh