US tariff pressure: From challenge to opportunity

- Due to the impact of the new US tax policy, Tuyen Quang enterprises face many challenges in exporting. However, this is also an opportunity for them to restructure their strategies, improve quality, and expand their markets. Along with that, the timely support of authorities at all levels and management agencies, especially the Department of Industry and Trade, has helped enterprises quickly grasp information and orient production in accordance with new market requirements. The initiative from both enterprises and authorities is creating the necessary resistance, helping Tuyen Quang have the right direction in the context of a volatile market.

Báo Tuyên Quang•07/05/2025

Challenges from trade policy

According to statistics from the Department of Industry and Trade, in the province there are 8 enterprises exporting to the US market, including: Seshin VN2 LLC, MSA YB LLC, Woodsland Tuyen Quang Joint Stock Company, Acacia Woodcraft Vietnam LLC, Huiling Wood Products Vietnam LLC, Hitarp Vietnam LLC, My Lam Tea Joint Stock Company and Greenhome Flooring LLC with export activities to the US market.

Main export items include: Exported garments, wooden furniture, interior and exterior furniture, tea, and canvas rolls. The total export value of goods to the US market in 2024 will reach 57.1 million USD, expected to reach 78.5 million USD in 2025. Exporting enterprises are making careful and proactive preparations to maintain market share and maintain growth momentum in a challenging context.

Woodsland Tuyen Quang Joint Stock Company is a business operating in the field of processing interior and exterior wooden furniture. The export markets are the US, Canada, Japan and European countries. Of which, the export market to the US accounts for about 25%. Mr. Le Quang Khanh, Director of Woodsland Tuyen Quang Joint Stock Company shared: The company has signed 7 export contracts with 7 US partners for wooden furniture with a value of 4.85 million USD. The US tariff situation is unpredictable, currently 2 US partners have requested to temporarily stop exporting. The US tax policy is still unpredictable, which also causes great difficulties for production and consumption plans.

Leaders of the Department of Industry and Trade grasp the production situation at export enterprises in the province.

Similarly, Seshin VN2 LLC is a garment manufacturing company, with up to 90% of its export turnover dependent on the US market. In 2024, the company exported 6.7 million products, worth 32 million USD, and is expected to reach 9.6 million products, equivalent to 58.5 million USD in 2025. However, the new tax policy has caused 230,000 products to be temporarily suspended from import. Signed orders and products in production are also in stock, creating great pressure on warehouses, cash flow and human resource planning.

In the context of unpredictable changes in tax policies, flexible adaptation and proactive implementation of response solutions are key factors for businesses to survive and overcome.

Proactive adaptation

Under pressure from stricter tax policies and increasing non-tariff barriers, Tuyen Quang's export activities are inevitably affected. However, the difficulties are also a test for businesses and local authorities to re-evaluate their development strategies, proactively restructure their direction, and at the same time form an ecosystem to support businesses that are competitive enough in the international market.

Without waiting, many businesses have quickly changed direction. According to Mr. Le Quang Khanh, Director of Woodsland Tuyen Quang Joint Stock Company, in addition to adjusting delivery times to ease pressure, the company has expanded access to markets such as Canada, Japan, Europe, areas with a solid foundation of trade cooperation with Vietnam. Mr. Chen Chiea, Deputy General Director of Acacia Woodcraft Vietnam Company, said that the company is focusing on stabilizing production according to signed contracts. At the same time, it is proactively seeking more consumption partners in markets less affected by US tariffs.

At Seshin VN2 LLC, despite suffering great losses from order delays, the company quickly adapted by requesting to delay the investment progress of some technical items to focus resources on market expansion. Other businesses such as Huiling Wood Products, Greenhome Flooring... are also actively exploiting opportunities in potential markets such as Japan, Australia, and the Middle East.

Comrade Loc Kim Lien, Deputy Director of the Department of Industry and Trade, affirmed: The Department has proactively worked with key export enterprises, assessed the specific level of impact and promptly synthesized and reported to competent authorities. With the accompanying role, the provincial Department of Industry and Trade is making efforts to support enterprises to maintain production, stabilize employment, improve competitiveness, and gradually help enterprises overcome the "big waves" of the market.

Despite facing many difficulties, Tuyen Quang's export picture in the first quarter of 2025 still recorded positive signals. The export value of goods is estimated at 52 million USD, reaching 29.7% of the annual plan and increasing by 77.8% over the same period last year. This is a clear demonstration of the proactive spirit, courage and resilience of the province's business community. In the second quarter, the province strives for an export value of 43.8 million USD.

Market expansion orientation

In the context of the constantly fluctuating world market, especially under the impact of the new US tax policy, expanding and diversifying export markets is becoming a vital requirement for businesses. Tuyen Quang province clearly identifies the direction of accompanying businesses, closely coordinating with specialized agencies of the Ministry of Industry and Trade to support access to new markets, gradually replacing traditional markets if trade barriers appear.

Along with that, the province is also actively taking advantage of Free Trade Agreements (FTAs) such as EVFTA, CPTPP, RCEP... to boost exports to major markets such as the EU, Japan, Korea, China, ASEAN. Potential regions such as Russia, Eastern Europe, Northern Europe, India, the Middle East, Africa and Latin America are also being researched and promoted in a methodical and professional manner. At the same time, the province will also increase the organization of specialized seminars, disseminate international economic integration policies, and guide businesses to make the most of incentives from FTAs.

According to comrade Loc Kim Lien, in the coming time, the Department of Industry and Trade will continue to update and provide market information, trade policies and international technical barriers in a timely manner, helping businesses proactively adjust their business strategies accordingly. Trade and investment promotion programs will be organized flexibly, combining direct and online activities, to introduce the province's potential and strengths, and connect trade more effectively.

Business support will also be enhanced, especially in matters related to trade defense, international trade disputes, anti-dumping, etc. The province will actively coordinate with trade counsellors to organize domestic and foreign promotions to accompany businesses in the journey to affirm their position on the global export map.

Hai Huong

Mr. Truong Trong Tue
Head of General Affairs Department, Management Board of Industrial Parks of Tuyen Quang province

Building a solid legal corridor

To create a favorable legal corridor for production and export activities, the Management Board closely coordinates with relevant agencies in supervising compliance with the law on construction investment, environmental protection, fire prevention and fighting and other relevant regulations. The planning and development of new industrial zones are proactively implemented to ensure clean land funds, creating conditions to attract investment projects, especially projects with export potential.

The Management Board regularly reviews and urges the progress of project implementation, contributing to preventing ineffective land use and promptly resolving difficulties for enterprises. Along with that, the Management Board also proactively guides enterprises to implement regulations related to labor safety, contract regimes, collective labor agreements and food hygiene and safety. These activities help protect labor rights, thereby helping enterprises retain workers so that enterprises can proactively implement production strategies and conquer export markets in the current volatile context.

Mr. Nguyen Huu Thap
Chairman of Tuyen Quang Provincial Business Association

Business support bridge

Currently, the business community in Tuyen Quang province is facing many difficulties, the biggest of which are institutional and administrative procedures. Legal documents are overlapping and contradictory, causing confusion in application. In the context of the US imposing tariffs on a number of products, key export enterprises such as textiles and wooden furniture are under great pressure. Without timely negotiation or support solutions, export output and market share will decline.

As the President of the Association, I always try to act as a bridge between businesses and the government, actively recommending to remove policy bottlenecks. However, for businesses to change direction, expand their industries or markets, the core is still the need for transparent institutions, open procedures and real support policies from the central to local levels so that when businesses encounter difficulties in exporting, they can have a faster direction to change their business and market direction.

Mr. Le Quang Chuyen
Director of My Lam Tea Joint Stock Company

Actively seek and expand markets

Every year, My Lam Tea Joint Stock Company exports more than 500 tons of tea to the US market, and more than 1,500 tons to other countries. Currently, the US has extended the deadline by 90 days and temporarily applied a 10% tax rate, so within 90 days, the company is trying to complete orders from partners, but customers are hesitant about signing long-term contracts. The tax policy is not clear and according to the announcement of the new tax policy for imported goods from Vietnam, with a tax rate of up to 46%, businesses must find other solutions, another opportunity is to expand the export market.

Along with expanding the consumer market, the Company always pays attention to and invests in modern production technology and strict quality control processes at all stages. At the same time, it builds a network of reputable raw material suppliers, capable of quickly meeting the requirements of quantity and quality.

Mr. Le Thai Ha
Director of HD Bank Tuyen Quang Branch

Accompanying businesses

In order to create favorable conditions for import-export enterprises to promote production and business activities and expand their scale in the international market, Ho Chi Minh City Development Joint Stock Commercial Bank (HD Bank) Tuyen Quang Branch proactively provides solutions to support loan interest rates for enterprises in the area. Currently, the total outstanding debt of enterprises at the branch is more than 1,000 billion VND with more than 60 enterprises borrowing capital.

To accompany businesses in the process of promoting import and export activities, HD Bank has provided a solution to support loan interest rates for import and export businesses. In addition to attractive interest rates, businesses will be guided in detail on loan procedures and quick disbursement time. Thereby, it aims to provide superior financial solutions, supporting businesses on the path to international market integration.

Source: https://baotuyenquang.com.vn/ap-luc-thue-quan-my-tu-thach-thuc-den-co-hoi-211287.html