On the afternoon of April 7, Minister of Agriculture and Environment Do Duc Duy chaired a working session with units under the Ministry and businesses and associations exporting agricultural products mainly to the US market. The meeting took place after US President Donald Trump announced a new counterpart tax rate on April 3.
At the meeting, Minister Do Duc Duy emphasized that in the recent past, the Ministry and the Government have taken many actions immediately after Mr. Trump announced the new counterpart tax rate, of which the number given to Vietnam is 46%.
Accordingly, Vietnam currently hopes to negotiate with the US side to propose solutions to reduce this tax rate. However, the Minister also emphasized that we must always prepare the scenario for the worst case scenario where the United States still applies this policy, without delay.
Accompanying businesses and proactively negotiating
Minister Do Duc Duy said that in the face of great challenges, the Government and ministries and branches have identified the guiding motto as: calm, flexible, closely following reality, accompanying businesses and proactively negotiating.
"Vietnam's viewpoint is not to face off, but to seek comprehensive, long-term solutions, with special attention paid to negotiations," the Minister affirmed.
In negotiations with the United States, we need to promote the existing advantages of Vietnamese agricultural products: good quality, competitive prices, not directly competing with domestic production in the United States and many items without replacement options.
In addition, it is necessary to recognize challenges as opportunities to restructure production, goods and export markets. This is the right time to promote the development of high-value added products, towards a more sustainable and high-quality production model. The United States is still one of the large, potential markets with high profit rates for Vietnamese agricultural products.
The Minister said that the Ministry of Agriculture and Environment has and will continue to implement the solutions previously directed by the Government. In particular, negotiations with US partners such as the US Department of Agriculture and the US Embassy in Vietnam will be strongly promoted, in order to have a common voice with the US Government.
In particular, the Ministry will direct localities, businesses and farmers to maintain production plans, unchanged during this time. At the same time, it will support businesses to find alternative markets and continue to record recommendations from businesses and associations to propose to the Government.
Always ready to act with a proactive spirit
In addition to long-term solutions, the Minister also acknowledged important recommendations from businesses and associations. These opinions will be accepted and considered for early implementation by the Ministry of Agriculture and Environment such as: private negotiations on agricultural product tax packages with the US side, which have been initially discussed with the Government and the working delegation of Deputy Prime Minister Ho Duc Phoc.
Research the possibility of shifting production chains, for example importing round wood from the United States, domestically processed, and exporting to China. Review export taxes on agricultural, forestry and fishery products to markets outside the United States, ensuring harmonious benefits.
Propose to the Ministry of Finance on shortening the VAT refund time, facilitating cash flow for businesses. Promote logistics cost reduction, support businesses in transportation, storage, and preservation of goods.
Propose a comprehensive support package in case negotiations do not achieve positive results, including credit support, land rent exemption, tax payment extension, support for farmers in production, farming and the establishment of a Technology Development Fund for agricultural production.
Despite facing great difficulties, the message from the Government is clear: do not be passive, do not be caught up in confrontation, but always be ready to act with a proactive, responsible and courageous spirit.
