Talk: Dong Nai prepares solutions to respond when the US imposes tariffs

On April 4, 2025, the Department of Industry and Trade assessed the impact of the new US tax rate (expected to be 46%) on the export and trade services market of Dong Nai province. The US applying a 46% tax rate on imported goods from Vietnam will be a big shock to export enterprises in Dong Nai. Because this is a major export market of the province, accounting for nearly 1/3 of export turnover. Previously, goods from Dong Nai as well as the whole country exported to the US fluctuated from 0-25% depending on the industry. Therefore, the sudden increase in US taxes will reduce the competitiveness of Dong Nai goods in the US market. If Vietnam is subject to a new tax rate by the US, exports of textiles, footwear, wood, electronics, auto parts, agricultural products, etc. will decrease sharply because it is difficult to compete with similar goods from countries with low taxes.

Báo Đồng Nai•09/04/2025

In 2025, Dong Nai has a double-digit growth target, with expected export growth of about 10%, equivalent to nearly 26.4 billion USD. However, due to the impact of the new US reciprocal tax rate, export turnover from Dong Nai to the US may decrease by 30-50% in the short term, equivalent to 2.3-3.8 billion USD. Thus, the total export turnover of Dong Nai province this year is likely to reach only 22.5-24 billion USD, down 9-15% compared to last year. In addition, businesses may have to reduce production, many businesses will seek to move part of their production to other countries to avoid high taxes. At the same time, some foreign direct investment (FDI) enterprises may leave Dong Nai when they no longer have the advantage of exporting to the US. The trade, service and logistics sectors will also be affected...

Dong Nai has identified the difficulties when the US imposes new taxes to prepare solutions to respond. Specifically, the province will increase trade promotion and international e-commerce, support businesses to find alternative export markets such as Europe, Japan, ASEAN countries, the Middle East, Latin America, Australia, New Zealand, etc. The province will help businesses prepare long-term response plans in the context of unpredictable developments in trade policies between the US and Vietnam. In particular, businesses are encouraged to reduce dependence on processing, focus on developing products with high technology content or private brands to avoid price competition. Optimize the supply chain, build a domestic supply chain and source raw materials from countries not affected by high tariffs to reduce production costs, etc.

Khanh Minh

Source: https://baodongnai.com.vn/kinh-te/202504/thoi-dam-dong-nai-chuan-bi-cac-giai-phap-ung-pho-khi-my-ap-thue-43a5536/