Businesses worry about responding to trade tensions

Dong Nai is a major industrial production center of Vietnam, more than 70% of industrial products are exported to more than 180 countries and territories around the world. Export is one of the 5 main economic indicators of the province, contributing greatly to economic growth. Therefore, global trade tensions will greatly affect industrial production and exports.

In particular, at the beginning of the year, the US announced that it would impose a reciprocal tax on imported goods from Vietnam of up to 46%, causing many businesses to worry. Currently, some items such as aluminum and steel have had their taxes raised to 50% by the US, causing many difficulties for businesses in these industries and they are having to find ways to adapt. For other industries, businesses are expecting the Government to negotiate favorably so that the US can reduce taxes on Vietnamese goods.

The 90-day US tax extension period for imported goods from countries, including Vietnam, is about to end. Therefore, Dong Nai enterprises as well as the whole country, in addition to speeding up the export of orders to the US, are urgently looking for new orders from other markets to minimize risks. However, in the short term, expanding exports to other markets is not easy. Because each country and territory will have its own technical barriers to imported goods. Therefore, according to economic experts, in the context of global trade tensions continuing to escalate, enterprises must be flexible and find ways to adapt to stabilize production and export.

The US is Dong Nai ’s largest export market, accounting for more than 32% of the province’s total export turnover (equivalent to more than 7 billion USD/year). Dong Nai’s major export items to the US are footwear, textiles, wood products, means of transport and spare parts, computers, electronics and components, iron and steel products, etc.

In addition, domestic goods producers are facing fierce competition as Chinese goods, which have reduced exports to the US, will flood into Vietnam. Thus, the competition for market share in the domestic market is also more fierce.

The Ministry of Industry and Trade is promoting trade in many countries with potential for Vietnamese goods. From there, it supports businesses in finding more partners to expand exports. Exporting businesses should contact the Vietnamese embassy in each country to get more information about each market, and develop appropriate production and export plans. Businesses should not focus on exporting to only one or two countries, because when faced with risks, the impact will be huge.

Currently, Vietnam has signed bilateral and multilateral free trade agreements with many countries. Therefore, enterprises can expand exports to member countries in the agreement to enjoy tariff incentives and increase competitiveness.

Huong Giang

Source: https://baodongnai.com.vn/kinh-te/202506/doanh-nghiep-lo-ung-pho-voi-cang-thang-thuong-mai-7a21180/