Accompanying businesses in export

Transporting rice for export at a business in Co Do district, Can Tho city.

Proactively seek ways to support businesses

Carrying out the tasks assigned by the Prime Minister, aiming to support businesses in overcoming difficulties, proactively adapting to the new situation to continue promoting production and export activities, maintaining sustainable growth, on April 17, in Hanoi, the Ministry of Industry and Trade held a conference "Supporting businesses in overcoming difficulties in the context of the US applying reciprocal taxes on exports from Vietnam".

According to the Ministry of Industry and Trade, the additional tax rate of the United States will have a strong adverse impact, greatly affecting most of Vietnam's key export groups to the United States such as textiles, footwear, wood, agricultural - aquatic - seafood products, etc. When this policy is applied, Vietnam's export goods will find it more difficult to compete with domestic goods and goods from other countries that are subject to lower tax rates when imported into the United States. This puts great pressure on the Vietnamese export business community in terms of the possibility of reduced profits, narrowing of orders and export market share, as well as disruption of the supply chain and increased inventory, when US partners can find alternative sources of goods from countries that are not subject to high taxes.

At the conference, Minister Nguyen Hong Dien said that in recent days, the leaders of the Party, State and Government, and the Prime Minister have been determined and making efforts to carry out many diplomatic activities, while directing the Ministry of Industry and Trade and relevant ministries and branches to synchronously deploy many solutions to resolve problems, seek reasonable solutions for both sides, aiming to achieve a reciprocal trade agreement that is appropriate, stable, balanced, and mutually beneficial.

Can Tho City has 22 enterprises exporting products to the US market. In 2024, the export turnover of goods to the US will be nearly 192.3 million USD, accounting for 11% of the city's total export turnover, with the main export items being rice, seafood, agricultural products and processed agricultural products, garments, handicrafts, steel and steel products. Of which, garments and seafood will be greatly affected when the 46% tax rate comes into effect.

In order to support the above enterprises, on April 14, the People's Committee of Can Tho City organized a meeting with enterprises exporting to the US market to listen to opinions, recommendations and proposals from the business community. At the conference, enterprises said that imposing a tax of 46% will cause enterprises to lose their competitive advantage in price compared to countries that are not subject to taxes or are subject to lower taxes. Enterprises in the city may be forced to sharply reduce the volume of exports or temporarily suspend exports to the US market in the short term to avoid losses. This leads to an expected decrease in Can Tho City's export turnover to the US in the last quarters of the year. Despite the many impacts of the US tax, enterprises are still looking for ways to overcome difficulties and maintain production.

At the meeting, Mr. Duong Tan Hien, Permanent Vice Chairman of Can Tho City People's Committee, requested relevant agencies to record and accept recommendations and proposals from businesses to consider and advise on handling within the city's authority, and at the same time submit to the Central Government issues beyond its authority. At the same time, monitor and closely follow the directions and instructions from the Central Government to promptly advise the City People's Committee on solutions to support businesses; respond to reciprocal taxes. At the same time, Mr. Duong Tan Hien also requested businesses to continue to promote a dynamic and creative spirit to find solutions to respond well to both good and bad scenarios from the US reciprocal tax policy.

Practical solutions

Over the years, the Ministry of Industry and Trade has implemented a series of practical solutions from promoting trade, effectively utilizing free trade agreements (FTAs), to connecting businesses with potential markets. The Ministry of Industry and Trade has also focused on and promoted policy research, forecasting, and support in removing difficulties in import and export activities of businesses. At the same time, the Ministry also supports businesses in improving production capacity, digital transformation, brand development, and product innovation to meet the standards of demanding markets.

The Vietnamese Trade Office System abroad has been striving to promote its role as an economic "envoy" to contribute to promoting Vietnam's import and export activities in particular and the process of international economic integration in general. From July 2022, at the end of each month, the Ministry of Industry and Trade organizes a trade promotion conference with the Vietnamese Trade Office System abroad. The conference takes place in person in Hanoi combined with online participation from agencies and business communities from 63 provinces and cities across the country. The content of the conferences, in addition to a general overview of the import and export picture with the latest updates, also includes specialized sessions for Vietnam's export industries and products with strengths and spearheads, as well as focusing on clarifying the needs of some localities. In addition, the Trade Offices also have the opportunity to regularly exchange, ask questions and update development strategies and needs of industries, localities, associations and businesses nationwide. In this sense, the conference is not only a trade promotion meeting but also a dialogue conference and implementation of tasks of the Industry and Trade sector with foreign trade agencies.

Currently, the international trade situation is complicated, fast, unpredictable, strategic competition is increasingly strong, especially sensitive when the United States applies reciprocal tariff policies to many countries in the world including Vietnam. Along with that, escalating trade tensions lead to trade fraud, in which fraud of goods origin tends to increase and become more complicated to avoid sanctions that countries will apply to imported goods. Transforming C/O management in the new context, the Ministry of Industry and Trade issued Directive No. 09/CT-BCT (effective from April 15, 2025) on strengthening state management of goods origin inspection and supervision in the new situation. The Directive provides a series of measures to strengthen coordination between units inside and outside the Ministry of Industry and Trade to minimize the risk of tax evasion investigations and ensure the reputation of Vietnamese goods in the international market, especially in the context of FTAs ​​entering the stage of extensive implementation.

Mr. Ha Vu Son, Director of the Department of Industry and Trade of Can Tho City, concurrently Head of the Can Tho Import-Export Department, said that the Department continues to monitor the performance of export enterprises to promptly remove difficulties for enterprises; especially monitoring the US's reciprocal tax policy on export goods. At the same time, promoting existing markets, expanding to seek new markets. Assessing the importance of C/O issuance procedures for export enterprises in the city, as well as provinces and cities in the Mekong Delta region with trader profiles requesting C/O issuance, the Can Tho Import-Export Department together with specialized departments under the Department promptly grasp information on the performance of enterprises to support and create favorable conditions for the prompt issuance of C/O in accordance with regulations.

Article and photos: KHANH NAM

Source: https://baocantho.com.vn/-ong-hanh-cung-doanh-nghiep-trong-xuat-khau-a185724.html