US 'reciprocal tax' policy: Hanoi seeks solutions to cope with challenges

On April 2, the US President signed a decree imposing a 46% import tax on Vietnamese goods, causing great concern among businesses and leaders of the capital's departments and branches. Specifically, Mr. Nguyen The Hiep - Deputy Director of the Hanoi Department of Industry and Trade said: There are some impacts from the US imposing new taxes (if applied) on Hanoi, and will affect key export industries such as: Electronics, machinery, equipment, textiles, footwear and wooden furniture are the most heavily affected, these are also the key export products of Hanoi (accounting for 70% of Hanoi's total export turnover to the US). Accordingly, economic growth may also be affected due to a decline in exports, affecting budget revenue; Declining foreign investment attraction; Impact on businesses and workers...

To "resolve" the situation, the Department of Industry and Trade has proposed a number of solutions as follows: Closely monitor developments and changes in trade policies of major countries, regularly exchange with businesses to grasp market demand, provide information on businesses' support needs to the Ministry of Industry and Trade to promptly advise on appropriate response measures; Support businesses to invest in innovation of production technology and improve competitiveness when exporting goods of other countries, avoiding the US market and aiming at the rest with lower purchasing power and narrower market share; Organize domestic fairs, exhibitions, and trade promotion events to orient exports...

In addition, coordinate with the Trade Office of the Vietnamese Embassy in other countries to organize and welcome business delegations and international partners to survey, work, and connect trade with Vietnamese enterprises operating in potential export fields of Hanoi.

To “resolve difficulties” for enterprises, the Department of Industry and Trade recommends that the Government continue to reduce value added tax to reduce the main pressure on enterprises; Request credit institutions to continue to support and create conditions for enterprises, especially small and medium enterprises, to access credit. The Ministry of Industry and Trade and relevant ministries and branches continue to coordinate, exchange information with the Department of Industry and Trade and promptly resolve difficulties and problems of enterprises. Functional departments and branches need to continue administrative reform, create conditions to support enterprises to shorten the time to complete procedures to seize business opportunities both domestically and internationally.

According to Dr. Mac Quoc Anh - Vice President of the Hanoi Association of Small and Medium Enterprises, to promptly resolve difficulties and "remove difficulties" for enterprises, we must have a specific plan to negotiate tax reduction. At the same time, there must be a roadmap for lower tax rates, stimulating investment, increasing domestic market demand; Restructuring the economy to improve internal strength, focusing on consumption growth and new growth axes; Reforming administrative procedures, creating conditions for enterprises to develop.

“To do so, businesses must have high-quality products and competitive advantages through specialized products. If they can do so, businesses will still be able to sustain themselves,” Dr. Mac Quoc Anh emphasized.

Origin fraud is quite common!

Enterprises need to pay more attention to the issue of origin, because the reality of origin fraud in Vietnam is quite common. In addition, it is necessary to diversify export markets: Enterprises are aware of the risks but cannot orient themselves, but must do so at a higher level. Specifically, the Ministry of Industry and Trade and the Government need to provide orientations for market transformation for enterprises, creating conditions for enterprises to stabilize production and business.

Faced with this situation, the Hanoi Leather and Footwear Association hopes that the Government will negotiate as soon as possible to stabilize the spirit of businesses; the Ministry of Industry and Trade will quickly guide businesses in market conversion, with more realistic information; continue to organize truly quality trade promotion events; encourage the development of the domestic market, with more practical support policies and mechanisms (tax policies, capital support...), said Mr. Pham Hong Viet - Chairman of the Board of Directors of Hanoi Rubber Joint Stock Company.

Presentable

Source: https://baophapluat.vn/chinh-sach-thue-doi-ung-cua-my-ha-noi-tim-giai-phap-ung-pho-voi-thach-thuc-post545181.html