Chairman of the Provincial People's Committee Pham Anh Tuan works with departments, branches, businesses, associations, and industries to find proactive solutions to respond to new US tariffs.

Meeting scene

Earlier, on April 2, US President Donald Trump announced a new tariff policy. Accordingly, from April 5, a basic tax rate of 10% will apply to all imported goods from major US trading partners, and from April 9, a higher “reciprocal” tax rate will apply to more than 60 countries. Vietnam will be subject to a tax rate of 46%. This policy also combines non-tariff barriers and accusations of currency manipulation, in which Vietnam is mentioned in relation to monetary policy.

According to data from the Ministry of Industry and Trade and the General Statistics Office, Vietnam's export turnover to the US in 2024 will reach 136.6 billion USD, while imports from the US will be 13.1 billion USD, leading to a trade deficit of 123.5 billion USD.

In Binh Dinh, export turnover to the US in 2024 will reach 604 million USD, up 9.6% compared to 551 million USD in 2023, accounting for 34.5% of the total export turnover of the whole province (1.752 million USD). Import turnover from the US is estimated at 11.6 million USD, with a trade surplus of 592.4 million USD.

The main export industries to the US include textiles, wood, wood products, plastic products, and footwear. The province currently has 33 enterprises exporting to the US, with 20 enterprises producing interior and exterior wood furniture, 12 enterprises producing garments and footwear, and 1 enterprise exporting seafood, concentrated in large industrial parks such as Phu Tai, Nhon Hoi, and industrial clusters in Hoai Nhon, Phu Cat, and Tuy Phuoc.

Chairman of the Provincial People's Committee Pham Anh Tuan gave a speech at the meeting.

In response to the new US tariff policy, Chairman of the Provincial People's Committee Pham Anh Tuan reiterated the direction for the province's export enterprises to diversify markets and "not put all their eggs in one basket".

The Chairman of the Provincial People's Committee requested the Department of Industry and Trade to coordinate with textile, wood and seafood enterprises to expand the domestic market, especially the wood industry which is mainly for export and has not yet exploited the domestic market. The State will support product introduction if enterprises shift to the domestic market. Regarding the international market, the Chairman of the Provincial People's Committee requested the Department of Foreign Affairs, through the Ministry of Foreign Affairs, to promote and expand the international market.

The head of the provincial government requested the Department of Industry and Trade to closely follow the detailed developments of tax policies for each industry and product, to support businesses in the province and businesses investing in the province.

The Chairman of the Provincial People's Committee emphasized that businesses are customers of the government. If a series of businesses encounter difficulties, the lives of people and the locality will be greatly affected. Therefore, the authorities need to have policies to support social insurance, health insurance, and unemployment benefits, to cope with the situation where businesses have to temporarily stop production due to the impact of tax policies.

Regarding support policies, the Chairman of the Provincial People's Committee requested the Department of Finance to consider recommendations and proposals to higher levels to reduce land rental prices; the Tax Department to review taxes, the Department of Justice needs to review local legal regulations, adjust them to suit reality, and bring a development mindset instead of being constrained by rigid regulations.

The Chairman of the Provincial People's Committee also requested banks to support businesses with credit policies, helping them access capital more easily.

On the business side, the Chairman of the Provincial People's Committee suggested that it is necessary to innovate, apply science and technology, reorganize production, diversify markets, and calculate to exploit the domestic market. The Chairman of the Provincial People's Committee encouraged businesses to apply circular economy, take advantage of all resources to create value, and at the same time wait for Deputy Prime Minister Ho Duc Phoc's visit to the US to find opportunities for negotiation. The Chairman of the Provincial People's Committee believes that with the solidarity and consensus between the state and businesses, we will overcome this difficult situation.

Economic experts say that the new US tariff policy will have a negative short-term impact on the Vietnamese and Binh Dinh economies, especially on key industries such as textiles, footwear, wood products, seafood, and rattan.

The 46% tax rate makes Vietnamese goods 10-20% less competitive than Vietnamese competitors in the US market such as Thailand (36%), India (26%), Indonesia (32%), Malaysia (24%), Bangladesh (37%), Philippines (17%), Pakistan (29%)..., causing difficulties for large exporting enterprises. However, this is also an opportunity to diversify markets, take advantage of 17 FTAs ​​such as EVFTA, CPTPP, RCEP, and target markets in the Middle East, Northeast Asia, North America, and Africa. Enterprises are encouraged to invest in technology, digital transformation, green production, and research and development to increase added value, reduce dependence on the US, and overcome long-term tariff challenges.

Source: https://binhdinh.gov.vn/tin-tuc/hoat-dong-cua-lanh-dao/chu-tich-ubnd-tinh-pham-anh-tuan-hop-danh-gia-tac-dong-chinh-sach-thue-quan-moi-cua-my.html