What should Vietnamese businesses do before the "storm" of tariffs from the United States?

In danger there is opportunity

VCCI Chairman Pham Tan Cong said that VCCI organized the workshop with the desire to update accurate and timely information to the business community about the new US tax policies; assess the multi-dimensional impact on industries, businesses and the Vietnamese economy . In particular, listen to opinions and recommendations from businesses to synthesize and promptly report to the Government and relevant agencies, in order to propose solutions to remove difficulties, support businesses to respond effectively and sustainably.

Conference scene. (Photo: VNA)

According to a review by VCCI, the United States accounts for nearly 30% of Vietnam's total export turnover in 2024 with key items such as electronics, textiles, footwear, wood and wood products, seafood, machinery and equipment. In particular, many industries have an export proportion to the United States of up to 40%, even exceeding 50%, such as wood, textiles, and electronics.

This shows that if the reciprocal tax is applied, Vietnamese enterprises will be severely damaged due to loss of market share, reduced competitiveness, and production disruption. This will lead to job losses for workers, affecting social security and the overall growth of the country's economy.

Therefore, VCCI Chairman Pham Tan Cong said that in danger there is always opportunity, because businesses need to consider this as a time for Vietnam to review its development strategy, improve internal capacity, proactively adapt and reposition Vietnam's role in the global supply chain.

Mr. Pham Tan Cong - Chairman of Vietnam Federation of Commerce and Industry (VCCI) delivered the opening speech. (Photo: Nguoi dua tin)

It is necessary to continue diversifying export markets and supply chains, effectively utilizing the 17 signed free trade agreements (FTAs) to expand into less risky areas. With a domestic market of 100 million people, businesses need to pay more attention to developing the domestic market and consider this a solid pillar. At the same time, businesses must continue to promote bilateral cooperation with the United States, affirming their position as a reliable partner in green and clean fields.

Need more policies to support businesses

At the workshop, some economic experts also said that although the reciprocal tax policy poses many challenges, this is also an opportunity for Vietnam to restructure its economy, promote the shift to a sustainable development model, reduce dependence on a few markets and improve resilience to external fluctuations.

Economist Can Van Luc recommends that the Government be steadfast and pay more attention to measures to promote mutually beneficial cooperation with the US, strengthen dialogue and negotiations through various channels. Quickly implement specific solutions to balance trade with the US, increase imports from the US, and reduce corresponding taxes on imported goods from the US. The Government needs to have more policies to support businesses and industries that are negatively affected by the US's new tariff policy, stimulate domestic investment and consumption, and maintain the export front.

Dr. Can Van Luc speaks at the conference. (Photo: Nguoi dua tin)

Besides, it is necessary to restructure the economy, increase internal strength, autonomy, self-reliance, and self-strengthening: focus on other growth drivers (investment, consumption) and new growth drivers.

At the same time, businesses should make good use of support policies on taxes, fees, interest rates, etc. to reduce costs, streamline processes and apparatus. Grasp the major trends of dual green and digital transformation to build and implement digital transformation, green transformation and ESG strategies. Improve competitiveness including risk management, especially financial, exchange rate and legal risks; transparency of origin of goods, transit levels, trade fraud; meet greening requirements and environmental standards.

It is necessary to take advantage of opportunities from new generation FTAs ​​and from upgrading Vietnam's relations with the US, Japan, Australia, Malaysia, and Singapore.

Meanwhile, Mr. Dau Anh Tuan - Deputy General Secretary of VCCI - said that for existing orders, businesses need to monitor the situation, coordinate and negotiate with importers; and take advantage of exporting goods during the tax deferral period.

Along with that, gradually adjust the export market structure, diversify export markets, take advantage of FTA markets and domestic markets. Gradually reform and innovate production and business models, improve supply chains, enhance position in the value chain; enhance competitiveness; orient sustainable business.

VCCI recommends that the Government directly support businesses in procedures for handling delayed and canceled orders. Support credit, debt extension and deferral to handle cash flow problems. In addition, support advertising and promotion in other markets, connect with partners, and take advantage of FTAs.

Source: https://thoidai.com.vn/doanh-nghiep-viet-can-lam-gi-truoc-bao-tap-thue-quan-tu-hoa-ky-212767.html