Responding to trade challenges: Businesses are proactive, flexible, and expanding markets

The Ministry of Industry and Trade is also preparing plans to maintain export growth momentum. (Photo: KIM DUNG)

Speaking to the press, Mr. Ta Hoang Linh, Director of the Department of Foreign Market Development, Ministry of Industry and Trade, affirmed that Vietnam always promotes dialogue and seeks cooperation solutions that are beneficial to both sides. At the same time, the Ministry of Industry and Trade is also preparing plans to maintain export growth momentum, make the most of free trade agreements (FTAs) and promote market diversification.

Reporter: The United States has just imposed a tax of up to 46% on Vietnamese exports. How does the Ministry of Industry and Trade assess this move?

Mr. Ta Hoang Linh : The Ministry of Industry and Trade regrets that the United States has imposed unusually high tariffs on Vietnamese exports. This tariff does not fully reflect Vietnam's efforts to balance trade relations between the two countries.

Vietnam and the United States have complementary economies and do not compete directly. Vietnamese goods exported to the United States mainly meet the needs of this market, while also benefiting American consumers thanks to reasonable prices. In return, Vietnam has also made appropriate adjustments to facilitate US businesses, including lowering preferential import tariffs (MFN) on 13 groups of advantageous US goods.

Specifically, the average MFN tax rate 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% lacks scientific basis.

In the spirit of cooperation, the Ministry of Industry and Trade believes that the two sides can negotiate and find suitable solutions to ensure harmonious and long-term benefits. Immediately after the US announced the imposition of tariffs, Minister of Industry and Trade Nguyen Hong Dien sent a diplomatic note requesting a temporary suspension of the implementation of this decree and promoting high-level exchanges to resolve the issue.

We are arranging a call between the two Ministers as well as at the technical level with our colleagues at the Office of the United States Trade Representative (USTR) as soon as possible.

Reporter: How will this decree affect Vietnam's export growth target in 2025? What solutions does the Ministry of Industry and Trade have to support businesses?

Mr. Ta Hoang Linh : Vietnam's export target for 2025 is to grow by about 12%, reaching about 450 billion USD. The imposition of tariffs by the United States may cause certain impacts, but this is a situation that we have anticipated and proactively prepared to respond to.

In fact, Vietnam has 17 free trade agreements (FTAs) with more than 60 countries and territories, along with 70 bilateral cooperation mechanisms. This is an advantage for businesses to expand their markets and reduce their dependence on a single partner.

Currently, Vietnam's exports to the United States account for 30% of total exports, while the United States accounts for only 13% of total global imports. This shows that there is still 87% of the world market that Vietnam can exploit.

The Ministry of Industry and Trade will continue to expand trade relations and promote FTA negotiations with markets in the Middle East, Latin America, Central Asia and emerging economies. At the same time, we will also focus on improving logistics infrastructure, reducing transportation costs and enhancing business competitiveness.

This target is set in the context of global economic recovery and Vietnam taking advantage of signed free trade agreements.

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.

Reporter: What does the Ministry of Industry and Trade recommend for Vietnamese businesses to minimize risks from fluctuations in international trade?

Mr. Ta Hoang Linh: In the context of the US imposing reciprocal tariffs on many trading partners, Vietnamese enterprises need to proactively improve their adaptability. Accordingly, enterprises should diversify export markets, not only focusing on large markets such as the US and EU, but also exploiting new niche markets and potential markets.

In addition, improve product quality to meet technical, labor and environmental standards of export markets to reduce the risk of being subject to trade defense measures; control the origin of raw materials, comply with rules of origin in FTAs, and avoid risks related to trade fraud.

In addition, businesses need to strengthen their trade defense capacity, proactively update information, participate in training courses to effectively respond to foreign defense measures; closely monitor market developments to proactively update trade policies of countries to promptly adjust business strategies.

We believe that if the above solutions are implemented synchronously, Vietnamese enterprises will not only overcome the immediate challenges but also build a sustainable export base, minimizing the impact of external shocks.

Reporter: Thank you!

Source: https://baotuyenquang.com.vn/ung-pho-voi-thach-thuc-thuong-mai-doanh-nghiep-chu-dong-linh-hoat-mo-rong-thi-truong-209506.html