Hung Yen businesses respond to US tariff policy

On April 2, 2025, US President Donald Trump announced a basic tax rate of 10% on imported goods from all countries and territories in the world from April 5 and a corresponding tax rate of 46% for imported goods from Vietnam. The US then announced a temporary suspension of the corresponding tax rate for 90 days to negotiate with countries with trade deficits with the US. If this tax rate is officially applied, it will increase prices, reduce the competitiveness of exported goods in the US market, affect export enterprises, workers' lives, and the province's economic growth target in 2025 will be difficult to achieve. To minimize the damage, businesses have sought to respond.

Hung Yen Garment Corporation - Joint Stock Company (Hung Yen city) increases working hours and shifts to speed up the implementation of export orders to the US market.

    For nearly a month, nearly 2,000 workers of Hung Yen Garment Corporation - Joint Stock Company (Hung Yen city) have been working overtime, striving to complete export orders to the US market to deliver to customers as soon as possible. Ms. Pham Thi Phuong Hoa, General Director of Hung Yen Garment Corporation - Joint Stock Company said: Currently, the market share of goods exported by Hung Yen Garment Corporation to the US market accounts for about 60%, the tax rate ranges from 14% - 18% depending on the type of product. If the US imposes a 46% reciprocal tax on goods originating from Vietnam, it will affect the business. In the immediate future, with signed orders, we must speed up the implementation progress; proactively contact partners to find solutions to ensure the harmony of interests for both parties and closely follow the market to find new partners and markets.

    Following the developments and impacts of the US imposition of tariffs on imported goods, Mr. Nguyen Xuan Duong, Vice President of the Vietnam Textile and Apparel Association, said: Currently, textile and garment enterprises in Hung Yen province, including enterprises belonging to the Hung Yen Garment Corporation system, are facing great challenges because the rate of export orders to the US market accounts for 60% - 70% of output. The application of the 46% tax rate is still awaiting the final decision from the US. Currently, enterprises are speeding up the implementation of signed orders; recommending the Government and industry associations to negotiate with the US Government and import partners. However, this is an opportunity for enterprises to re-evaluate their capital and technology capacity; restructure the market; proactively develop flexible and synchronous response scenarios and innovate technology to compete in terms of productivity, product quality and corporate governance efficiency.

Enterprises exporting to the US market are speeding up the progress of fulfilling orders. In the photo: Production hours at Hung Long Garment and Service Joint Stock Company (My Hao town)

    Anticipating the strict requirements of the global commodity market, including the EU and US markets, and responding to the US imposition of anti-dumping taxes on imported goods, Hoa Phat Group has proactively provided complete records, data, and clear and transparent supply chain traceability to the US Department of Commerce. Therefore, from May 5, 2025, Hoa Phat Group's boxed steel pipe shipments are allowed to enter the US market with a self-certification of origin process without being subject to anti-dumping taxes.

Hoa Phat Group's square steel pipes are allowed to enter the US market with a self-certification of origin process.

    A representative of Hoa Phat Group said: To achieve this, Hoa Phat Group has invested in a production system on a modern technological line, all production stages are optimized so that the price is competitive. At the same time, completing procedures to prove the origin of raw steel for steel pipe production is from Vietnam. Continuing to improve competitiveness in both domestic and export markets, especially demanding markets such as the US and EU with high-quality steel products such as: prestressed steel, steel for crane cables, steel for precision screws...

    In fact, businesses speed up delivery progress and find "niche" markets, according to Ms. Nguyen Thi Thanh Ha, Chairwoman of the Provincial Business Association, that   is only a temporary measure. In the long term, the Hung Yen Provincial Business Association in particular and Vietnamese enterprises in general need to promote supply chain linkages, thereby reducing dependence on export markets and limiting risks from external fluctuations; focusing on digital transformation, technological innovation, process improvement, and product quality improvement to increase competitiveness. In the role of the Provincial Business Association, we will continue to accompany businesses, make recommendations to authorities at all levels, and coordinate with functional agencies and international organizations to propose practical solutions, protect business interests, help businesses minimize risks and maintain export growth momentum.

Le Thu - Mai Nhung - Duong Mien

Source: https://baohungyen.vn/doanh-nghiep-hung-yen-ung-pho-voi-chinh-sach-thue-quan-cua-my-3181336.html