'The US tax rate proposed to be applied to Vietnamese goods is unfair'

Vietnamese goods exported to the United States do not compete directly with US businesses in the US market.

On the afternoon of April 2 local time, US President Donald Trump signed an executive order imposing reciprocal tariffs on dozens of economies , effective from April 9, of which Vietnam will be subject to a tax rate of up to 46%.

Regarding this content, Mr. Ta Hoang Linh, Director of the Department of Foreign Market Development ( Ministry of Industry and Trade ) shared with the press the views of the Vietnamese Ministry of Industry and Trade on this matter.

Exchange, negotiate, aim for mutually beneficial results

- The United States has just imposed a tax rate of up to 46% on Vietnamese exports to this market. What are the specific assessments of the Ministry of Industry and Trade after this tax order?

- The Ministry of Industry and Trade regrets that the United States announced a 46% tax on all Vietnamese export goods, effective from April 9.

Vietnam and the United States are two complementary economies. The export and foreign trade structures of the two countries do not compete directly but complement each other, in accordance with the internal needs of each country.

Vietnamese goods exported to the United States mainly compete with third countries, not directly with US businesses in the US market. On the contrary, Vietnamese goods exported to the United States also create conditions for US consumers to use cheap goods.

The average MFN tax rate (the tax rate that Vietnam applies to goods from WTO member countries and must comply with Vietnam's WTO commitments) that Vietnam currently applies to imported goods is 9.4%. Therefore, the reciprocal tax rate that the United States plans to apply to Vietnamese goods of up to 46% is unscientific and unfair, and does not reflect Vietnam's goodwill and efforts over the past time in dealing with the trade deficit between the two countries.

Vietnamese enterprises participate in international trade fairs, expanding export markets

In recent times, the Government and ministries and sectors have dealt with a series of difficulties and obstacles of US businesses in Vietnam, issuing a Decree to reduce MFN tariffs, in which 13 groups of advantageous US goods benefited. In addition, many US projects in Vietnam have received attention, resolved and removed difficulties and obstacles.

According to the White House announcement, the reciprocal tariffs that the United States imposes on its trading partners are aimed at correcting global trade injustices, bringing manufacturing back to the country, strengthening national security, and promoting economic growth.

It is known that the tariffs will be maintained until the United States determines that the threat of trade deficit and unfairness in trade is resolved, remedied or mitigated. Therefore, the Ministry of Industry and Trade believes that there is still room for discussion and negotiation between the two sides to reach a mutually beneficial result.

This morning, right after the US announced the imposition of tariffs, Minister of Industry and Trade Nguyen Hong Dien sent a diplomatic note requesting the US side to postpone the decision to impose tariffs to spend time discussing and finding a reasonable solution for both sides. We are arranging a phone call between the two ministers as well as at the technical level with colleagues at the US Trade Representative (USTR) as soon as possible.

Need to make the most of 17 FTAs

- In your opinion, how will this decree affect Vietnam's export growth target in 2025? What solutions and recommendations does the Ministry of Industry and Trade have for businesses to ensure export growth targets?

- In 2025, the Ministry of Industry and Trade sets a target of export growth of about 12%, equivalent to about 450 billion USD. This target is set in the context of global economic recovery and Vietnam taking advantage of signed free trade agreements.

In case Vietnam and the United States cannot find a positive solution, this tax will have a certain negative impact on the export growth target. However, this is also an issue that the Ministry of Industry and Trade has predicted and prepared for. The Ministry of Industry and Trade has also proposed a specific Action Plan to the Government and advised businesses to take necessary steps when the problem occurs.

The Ministry of Industry and Trade forecasts that in the coming time, export activities will face many difficulties, therefore, close coordination between ministries, sectors and enterprises is needed to effectively implement proposed solutions to achieve the export growth target in 2025.

To realize the above goal, the Ministry of Industry and Trade believes that export enterprises need to take advantage of existing strengths, which are 17 free trade agreements with over 60 countries and territories and 70 bilateral cooperation mechanisms.

At the same time, businesses also need to promote the diversification of export markets. The US market accounts for 13% of global imports, but Vietnam's exports to the US account for 30% of Vietnam's total export turnover. This is an advantage but also a weakness of export activities. Vietnam still has many opportunities to exploit the remaining 87% of the world's market. The Ministry of Industry and Trade will continue to make efforts to open up export routes to new markets with much room.

On the side of the Ministry of Industry and Trade, in the coming time, the Ministry of Industry and Trade will continue to promote negotiations of FTAs with new markets in the Middle East, Latin America, Central Asia and other emerging markets.

In addition, trade promotion and logistics infrastructure improvement should be strengthened to reduce transportation costs and enhance the competitiveness of Vietnamese goods.

In addition, the Ministry of Industry and Trade also aims to expand the system of Vietnamese Trade Offices abroad to better support businesses in trade connection and export promotion.

In the long term, Vietnam will also have to restructure its economy, diversify markets, diversify products, and diversify supply chains to ensure rapid and sustainable development. Because a sustainable export industry cannot rely solely on processing, but must also rely on science, technology, and innovation to make the economy more resilient and minimize negative impacts from external shocks.

- What should domestic enterprises do to minimize risks from international trade fluctuations in the coming time, sir?

- In the context of the US imposing reciprocal tariffs on global trading partners, to minimize risks from international trade fluctuations, the Ministry of Industry and Trade recommends that domestic enterprises need to diversify export markets, effectively exploit key markets, traditional markets, as well as develop small markets, niche markets and open up new potential markets.

In addition, businesses need to improve product quality, ensure that products meet technical, labor and environmental standards of export markets, in order to increase competitiveness and reduce the risk of being subject to trade defense measures, and 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.

Enterprises also need to strengthen their trade defense capacity, raise awareness and ability to respond to foreign trade defense measures, through updating information and participating in related training courses. Actively update market information, regularly monitor and update information on markets and trade policies of countries, to promptly adjust appropriate business strategies.

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

Thank you sir .

TB (according to Vietnam+)

Source: https://baohaiduong.vn/muc-thue-hoa-ky-du-kien-ap-cho-hang-hoa-viet-nam-la-chua-cong-bang-408679.html