Binh Dinh Province Chairman: Export enterprises 'should not put all eggs in one basket'

On April 4, Chairman of Binh Dinh Provincial People's Committee Pham Anh Tuan held a "roundtable conference" with departments, branches, sectors and businesses to assess the impact and propose solutions to respond to the new US tax policy on the province's industries.

Chairman of Binh Dinh Provincial People's Committee Pham Anh Tuan talks with businesses.

Under the new US tariff policy, from April 5, a basic tariff of 10% will apply to all imported goods from major US trading partners, and from April 9, a higher “reciprocal” tariff will apply to more than 60 countries. Of these, Vietnam will be subject to a 46% tariff. This policy also combines non-tariff barriers and accusations of currency manipulation, with Vietnam being mentioned in relation to monetary policy.

Binh Dinh provincial authorities and businesses said that the US is the main export market for many businesses operating in the production and trading of textiles, wood, wood products, plastic products, and footwear.

There are currently 33 enterprises in Binh Dinh exporting to the US, including 20 interior and exterior wood enterprises, 12 garment and footwear enterprises, and 1 seafood enterprise.

In 2024, export turnover to the US will reach 604 million USD, an increase of 9.6% compared to 2023, accounting for 34.5% of the total export turnover of the province (1.752 billion USD). Import turnover from the US is estimated at 11.6 million USD, with a trade surplus of 592.4 million USD.

According to businesses, the US applying a 46% tax rate on goods from Vietnam will have a profound impact on businesses. Currently, some partners from the US have asked Binh Dinh businesses to renegotiate signed orders or postpone signing new orders.

Sharing the difficulties and challenges that businesses are facing, Chairman of Binh Dinh Provincial People's Committee Pham Anh Tuan pledged to continue to accompany them to overcome difficulties. At the same time, he recommended that the province's export enterprises need to diversify their markets and "not put all their eggs in one basket".

“Enterprises need to innovate, apply science and technology, reorganize production, and calculate plans to exploit the domestic market. At the same time, they need to wait for Deputy Prime Minister Ho Duc Phoc’s visit to the US to find opportunities for negotiation,” Mr. Pham Anh Tuan emphasized.

The US is the main export market of Binh Dinh's wood industry.

The Chairman of Binh Dinh province also requested the Department of Industry and Trade to coordinate with textile, wood and seafood enterprises to expand the domestic market, especially the wood industry which is mainly for export and has not yet exploited the domestic market.

“The Department of Industry and Trade needs to closely follow the detailed developments of tax policies for each industry and product to support businesses and investors in the province,” Mr. Pham Anh Tuan emphasized.

Economic experts say the new US tariff policy will have a negative short-term impact on the Vietnamese and Binh Dinh economies, especially on key industries such as textiles, footwear, wood products, seafood and rattan.

However, this is also an opportunity to diversify the market, take advantage of 17 FTAs ​​such as EVFTA, CPTPP, RCEP, and target markets in the Middle East, Northeast Asia, North America, and Africa.

Enterprises are encouraged to invest in technology, digital transformation, green production, and research and development to increase added value, reduce dependence on the US, and overcome long-term tariff challenges.

Diamond

Source: https://doanhnghiepvn.vn/kinh-te/chu-tich-tinh-binh-dinh-doanh-nghiep-xuat-khau-khong-nen-bo-trung-vao-mot-gio/20250404085241499