According to the Ministry of Industry and Trade, three clear trends have emerged in world trade recently. The first is “de-globalization” or fragmentation in international trade, which has led to the return of tariff instruments. The second is market protection through technical measures, trade barriers or trade defense measures. The third is unpredictable policy moves that have disrupted, damaged, and even broken supply and production chains.
Faced with the complicated developments of the world market situation, the Ministry of Industry and Trade has proactively developed scenarios and response plans when global trade tensions escalate.
Vietnam - US economy is complementary, not directly competitive
The Ministry of Industry and Trade said that in the coming time, the industry and trade sector plans to focus on synchronous and effective solutions to limit risks and promote exports.
Firstly, continue to support businesses and industry associations to take advantage of competitive advantages, 17 free trade agreements (FTAs) and nearly 70 existing bilateral cooperation mechanisms with other countries to effectively exploit key and traditional markets, develop small and niche markets and open up new potential markets.
Second, continue to strongly implement the strategy of diversifying export markets to potential markets, through research, dissemination of information and market opportunities to businesses, proposing negotiations of new FTAs with potential markets, strengthening trade promotion activities, and boosting exports to these markets.
Third, units within the Ministry of Industry and Trade coordinate with functional agencies and Vietnamese trade offices abroad to increase their grasp of information on the situation and economic, political and policy fluctuations in the region and the world that affect trade with Vietnam, thereby promptly issuing warnings to the business community and advising the Government on appropriate policy responses.
Fourth, continue to coordinate with ministries and branches in promoting the implementation of the Government's project on "Strengthening state management of anti-avoidance of trade defense measures and origin fraud" to strengthen the fight against origin fraud and illegal transshipment; strictly handle violations.
Fifth, implement business support work in a specific direction, closely following each market and industry.
Sixth, increase the application of e-commerce in cross-border goods export activities.
Seventh, continue to strongly implement the campaign for Vietnamese people to prioritize using Vietnamese goods for Vietnamese people at home and for our overseas Vietnamese.
Regarding the US market, the Ministry of Industry and Trade believes that the economic and trade relations between the two economies are complementary in nature. The export and foreign trade structures of the two countries do not compete directly but complement each other, in accordance with the internal needs of each country.
Vietnamese goods exported to the US mainly compete with third countries, not directly with American businesses in the US market. On the contrary, it also creates conditions for American consumers to use cheap Vietnamese goods.
The Ministry of Industry and Trade forecasts that if the US imposes an additional 25% tax on all imported goods from other countries, Vietnam will still have many opportunities to continue exporting because in reality, the production capacity of US steel and aluminum manufacturers cannot immediately meet domestic demand. However, the profit margin of exporting enterprises may decrease.
