Dak Nong businesses respond to US tax policy

Increase production

Although not participating in exporting goods to the US market, Nghiep Xuan Import Export Trading Company Limited, Gia Nghia City ( Dak Nong ) is suffering indirect impacts from this country's tariff policy.

Frozen durian for export at Nghiep Xuan Import Export Trading Company Limited, Gia Nghia City

Director of Lau Kieu Van Company informed that currently, the company's products are being exported to the Canadian market. However, to get to this market, they must first go through the US.

To avoid risks from the new US tariff policy, businesses around the world have massively increased their exports to other countries.

This has led to a sudden increase in shipping costs, greatly affecting production costs as well as the selling prices of goods. In the short term, it is an increase of 10% compared to normal days.

In the first quarter of 2025, the company produced over 1,000 tons of various products, an increase of 30% over the same period last year. The products that the company is focusing on producing are: frozen mango, frozen durian, jackfruit, banana leaves, vegetables, spices... In particular, for the Canadian market alone, the company is exporting more than 100 tons of various goods each year.

Every year, Nghiep Xuan Import Export Trading Company Limited is exporting more than 100 tons of various goods to the Canadian market.

According to Ms. Van, the immediate solution is for businesses to take advantage of the negotiation time between the two governments to boost production and increase the quantity of goods to serve partners. Next, they will monitor the market to adjust selling and purchasing prices in the most reasonable way.

Currently, for old orders, the company still supplies to partners normally, at the same price as the original contract. As for new orders, the company will renegotiate to reach a final price according to the general market developments.

Similarly, Thinh Phat Macca Sachi Import Export Trading Company Limited, Gia Nghia City, is also accelerating production.

This is the first year the company has exported goods to the US market. In the first 3 months of the year, the company has supplied nearly 60 tons of freeze-dried agricultural products to this country such as durian, pineapple, dragon fruit, rambutan, mangosteen, etc.

Producing pineapple for export at Thinh Phat Macca Sachi Import Export Trading Company Limited

Company Director Nguyen Thi Ngoc Huong informed that currently, with the developments of the world market, especially the impact of the US's reciprocal tax policy, export businesses like us will face many challenges.

To cope, the company has recently been stepping up investment in modern production lines. In particular, the freeze dryer has a capacity 5 times higher than the old equipment, with a drying output of 1.5 - 2 tons/batch.

The company also focuses on training to improve the skills of its employees. Technical solutions will be applied to increase labor productivity and flexibly respond to changes in the market.

Many export enterprises in Dak Nong are monitoring and grasping the situation to take timely response measures. The business community also has high expectations for the results of the Government 's negotiations with the US to reduce tariffs.

Have a long-term response plan

According to the Department of Industry and Trade, Dak Nong's industrial production index (IIP) in the first quarter of 2025 is estimated to increase by 5.89% over the same period in 2024.

Of which, the mining industry increased by 3.38%; the processing and manufacturing industry increased by 5.72%; the electricity, gas, hot water and steam production and distribution industry increased by 6.04%; the water supply industry, waste and wastewater management and treatment activities increased by 8.79%.

Passion fruit production for export at Long Hue Investment Joint Stock Company

Dak Nong Department of Industry and Trade said that the US market only accounts for a very small part of export turnover, so the new tax policy does not affect the province's export activities too much. However, the US tax policy still has some indirect impacts, creating great competitive pressure for the business community.

The sudden increase in US tariffs will reduce the competitiveness of Dak Nong goods in the US market. If Vietnam is subject to new tariffs by the US, Dak Nong's agricultural exports will be severely affected because it will be difficult to compete with similar goods from countries with low tariffs.

Currently, the relevant authorities are closely coordinating with the Ministry of Industry and Trade and other localities to advise the Provincial People's Committee to promptly deploy solutions to support import-export enterprises.

Dak Nong's products are guaranteed to meet standards and regulations on origin to avoid trade sanctions.

In the immediate future, Dak Nong will strengthen trade promotion and international e-commerce, and support businesses in finding alternative export markets.

The province encourages businesses to optimize supply chains, build domestic supply chains and source raw materials from countries not affected by high tariffs to reduce production costs.

The products must also meet the standards and regulations on origin to avoid current trade sanctions. In particular, it will support businesses in preparing long-term response plans in the context of unpredictable developments in trade policy between the US and Vietnam.

In particular, businesses are encouraged to reduce dependence on processing and focus on developing high-tech products or their own brands to avoid price competition.

According to the plan announced by US President Donald Trump, imported goods from more than 180 countries and territories into the US will start to be subject to a 10% tax. If nothing changes, the US's largest trading partners will be subject to a higher reciprocal tax rate of up to 50%. Of which, Vietnam is one of the countries that could be subject to a tax rate of up to 46%.

Source: https://baodaknong.vn/doanh-nghiep-dak-nong-ung-pho-voi-chinh-sach-thue-cua-my-249292.html