Businesses affected as US government imposes 46% import tax

There are 24 countries and territories investing in industrial parks (IPs) and economic zones, of which 142 are Chinese projects with a total registered investment capital of 5,809 million USD, and the United States has 8 projects with a total registered investment capital of 34.7 million USD.

In 2024, revenue from production and business activities will reach 6.93 billion USD; export turnover will reach 6.42 billion USD; import turnover will reach 4.54 billion USD.

After the US Government announced the imposition of a 46% import tax on goods from Vietnam, the Provincial Economic Zone Management Board surveyed information at a number of businesses to understand the impact of the new tax policy that the US will apply.

Sailun Vietnam Co., Ltd. Tire Factory (Phuoc Dong Industrial Park).

In particular, groups of enterprises producing goods in the tire manufacturing industry with large investment capital, large revenue and direct export proportion to the United States (Sailun Vietnam Co., Ltd., Phuoc Dong Industrial Park, 30% of total production output; ACTR Co., Ltd., Phuoc Dong Industrial Park, over 90% of total production output) will be directly affected in production and business activities. In addition, some companies producing tire products but not exporting directly to the United States will also be indirectly affected in terms of production output.

The textile and garment industry has a direct export rate of 14% or more to the United States, and the leather shoe manufacturing industry is also greatly affected because these businesses process shoes for Adidas and Nike. In addition, there are other manufacturing industries that do not directly export to the United States but sell products domestically to serve export manufacturing businesses. Although not affected temporarily, in the long term, there will be a certain impact.

Regarding the level of impact on businesses, through the survey, most businesses have not determined the specific level, but some businesses have received information from customers that they have stopped orders and are waiting for the final decision of the US Government.

Faced with the above situation, businesses recommend that the Vietnamese Government continue to coordinate with the US Government to negotiate a temporary suspension of the 46% tax rate policy to have time to coordinate and discuss, bringing about the lowest tax rate to maintain business production activities of businesses.

Nhi Tran

Source: https://baotayninh.vn/doanh-nghiep-bi-anh-huong-khi-chinh-phu-hoa-ky-ap-dat-thue-nhap-khau-46--a188897.html