Vĩnh Phúc Seeks Mitigation Strategies Amid US Tariff Imposition

VĨNH PHÚC – A provincial conference, presided over by Mr. Tran Duy Dong, Deputy Secretary of the Provincial Party Committee and Chairman of the Provincial People’s Committee, along with Vice Chairpersons Mr. Nguyen Khac Hieu and Ms. Phung Thi Kim Nga, convened key stakeholders to address the implications of impending US tariffs on the region’s export sector.

Data presented at the conference indicated that in 2024, Vĩnh Phúc-based enterprises generated $547.1 million in exports to the United States, constituting 3.1% of the province’s aggregate export turnover. Preliminary figures for Q1 2025 reveal exports of $125.6 million, representing 3.6% of the provincial total. Principal export commodities include motorcycle components, apparel, safety helmets, footwear, household appliances, and electronic components.

However, the Vĩnh Phúc Department of Finance has assessed that the imposition of potential countervailing duties by the United States, reportedly reaching up to 46%, will materially increase the cost of goods, thereby diminishing the competitiveness of Vietnamese products, particularly those originating from Vĩnh Phúc, within the US market. This is anticipated to exert downward pressure on export volumes, negatively impacting the investment climate, industrial production, and the regional labor market.

The Industrial Zones Authority of Vĩnh Phúc estimates that 45 enterprises will be directly impacted by the new tariff regime, with an additional 49 indirectly affected.

During the conference, representatives from affected enterprises articulated the challenges presented by the prospective tariffs, outlining both short-term and long-term mitigation strategies. They further requested support from both the central government and provincial authorities to stabilize business operations and achieve the province’s socio-economic development objectives for 2025.

Provincial agency heads pledged their commitment to supporting enterprises through this period of uncertainty. The Vĩnh Phúc Customs Sub-Department affirmed its intention to enhance collaboration with the business community, expedite the resolution of issues pertaining to import-export procedures and tax policies, and ensure transparency in the issuance of certificates of origin.

Addressing the assembly, Chairman Tran Duy Dong acknowledged ongoing negotiations between Vietnam and the United States concerning tariff matters. Pending resolution, he directed provincial agencies to maintain a steadfast commitment to achieving double-digit growth targets in 2025.

Chairman Dong emphasized the imperative of implementing comprehensive and effective macroeconomic policies across monetary, fiscal, trade, and investment domains to support businesses. He also highlighted the focus on dismantling regulatory obstacles and expanding the domestic market through e-commerce and consumer demand stimulus measures.

Moreover, Chairman Dong instructed relevant entities to execute effective investment promotion programs, enhance competitiveness, reduce administrative burdens, improve the quality of human capital, and ensure adequate provision of electricity and water for production. The province also intends to invest in upgrading transportation and logistics infrastructure to reduce costs for businesses and attract new investment.

Chairman Dong urged the business community to maintain confidence in the leadership of the Party and the State, and to demonstrate resilience, proactivity, innovation, and flexibility in responding to the evolving environment. He suggested that enterprises adapt to a shift from “high import tariffs on raw materials” to “high import tariffs on finished products.”

Chairman Dong advised enterprises to bolster trade remedy capabilities, transition to Free On Board (FOB) production models, proactively negotiate the sharing of tax burdens with importers, ensure transparency in the origin of goods, diversify export markets, promote distribution through e-commerce, improve production processes, embrace digital transformation, and strengthen domestic supply chain linkages.

Mr. Tran Duy Dong welcomed continued feedback and candid suggestions from enterprises, reaffirming the Vĩnh Phúc province’s commitment to supporting and promptly addressing the challenges faced by businesses.

Source: Vneconomy, April 16, 2025.

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Source: VNECONOMY
This article has been adapted from its original source.