Ministry of Industry and Trade proposes solutions to respond to new US tax rates

Answering reporters' questions at the regular Government Press Conference on the afternoon of April 6, Deputy Minister of Industry and Trade Truong Thanh Hoai said that the 46% tax rate that the United States has just applied to imported goods from Vietnam exported to the US market since April 9 could have a significant and multi-dimensional impact on Vietnam's export activities and economic growth in the coming time.

This tax rate has a negative impact on Vietnam's export activities and economic growth, affecting the development of a number of processing and manufacturing industries, attracting FDI and domestic investment, as well as services and employment of domestic workers.

" The government is taking active measures to contact the US side and find a solution that is harmonized for us," Deputy Minister Truong Thanh Hoai informed.

Also according to Deputy Minister Truong Thanh Hoai, recently, the Ministry of Industry and Trade has proactively implemented a series of measures and increased work at all levels of the United States to clarify Vietnam's viewpoint.

Deputy Minister of Industry and Trade answers the press at the press conference.

In the coming time, through the policy dialogue mechanism of the Vietnam - US Trade and Investment Council (TIFA), the Ministry of Industry and Trade will coordinate with relevant ministries and branches to maintain close exchanges with US partners, coordinate with the US to handle existing issues in bilateral economic and trade relations, as well as study appropriate economic and trade cooperation frameworks in the new situation to serve the interests of the business communities of the two countries.

In addition, the Prime Minister has established a Working Group to enhance cooperation and proactively adapt to the adjustments of the US economic and trade policies, with Deputy Prime Minister Bui Thanh Son as Head of the Working Group, the Minister of Industry and Trade as Deputy Head of the Working Group, and members being leaders of relevant ministries and branches. The Ministry of Industry and Trade is the standing agency of the Working Group.

The working group is tasked with assisting the Prime Minister in closely monitoring developments in the world and the region, especially adjustments to the US economic and trade policies, to proactively advise, propose and recommend to the Government and the Prime Minister measures to flexibly, promptly, appropriately and effectively adapt to the world and regional situation and the US policy adjustments in the coming time, overcome challenges, seize opportunities, continue to maintain a peaceful and stable environment, a favorable foreign situation, and maximize external resources for economic growth and development.

Deputy Minister of Industry and Trade Truong Thanh Hoai also stated that in the coming time, our exports will face many challenges, so ministries and branches will closely coordinate with the Vietnamese business community and foreign enterprises investing and doing business in Vietnam to effectively implement the proposed solutions, aiming to achieve export growth in 2025.

The first solution is to take advantage of the existing strengths of 17 Free Trade Agreements with over 60 countries and territories; 70 bilateral economic and trade cooperation mechanisms.

Second, promote the strategy of diversifying export markets, continue to promote negotiations of FTAs ​​with new markets in the Middle East, Latin America, Central Asia and other emerging markets.

Third, strengthen and enhance the effectiveness of trade promotion work, and improve logistics infrastructure to reduce transportation costs and enhance the competitiveness of Vietnamese goods.

Fourth, support to improve the capacity of domestic manufacturing and exporting enterprises of Vietnam to ensure adaptation to the market and development trends. Here we must have more drastic policies for the processing and manufacturing industry, promote the development of supporting industries to promote domestic development, meet the origin requirements of countries.

Fifth, protect the legitimate rights and interests of businesses as well as provide early warning and timely handling of risks of lawsuits or trade defense cases to minimize the damage to Vietnam.

Sixth, expand the system of Vietnamese trade offices abroad to provide market information, business opportunities and better support for businesses.

Seventh, the Ministry of Industry and Trade assessed that, despite facing many challenges, this is also an opportunity to restructure the economy towards rapid but sustainable development, greening, digitalization, relying on science and technology, innovation; promoting the construction of an independent, self-reliant economy associated with deep, substantive, and effective international integration; promoting market expansion, diversification of markets, products, and supply chains; promoting localization; promoting exploitation of domestic markets and resources.

For Vietnamese enterprises, to minimize risks from international trade fluctuations, the Ministry of Industry and Trade recommends that domestic enterprises take the following measures:

First, proactively update market information: Regularly monitor and update information about the market and trade policies of countries, to promptly adjust appropriate business strategies.

Second, on the basis of existing Free Trade Agreements, diversify export markets: Effectively exploit key markets, traditional markets, as well as develop small markets, niche markets and open up new potential markets.

Third, improve product quality: Ensure products meet technical, labor and environmental standards of export markets, to increase competitiveness and reduce the risk of being subject to trade defense measures.

Fourth, control the origin of raw materials: Focus on controlling the origin of raw materials for production, ensuring compliance with the rules of origin in the FTA and avoiding risks related to trade fraud.

Fifth, strengthen trade defense capacity, raise awareness and ability to respond to foreign trade defense measures, through regular information updates and participation in relevant training courses.

The synchronous implementation of the above solutions will help Vietnamese enterprises increase their resilience to fluctuations in international trade and maintain sustainable export growth.

The Ministry of Industry and Trade will continue to accompany Vietnamese enterprises in their efforts to export to the US market, while actively researching and expanding potential export markets.

HG

Source: https://baophapluat.vn/bo-cong-thuong-de-xuat-cac-giai-phap-ung-pho-voi-muc-thue-moi-cua-hoa-ky-post544639.html