Impact on agricultural export industry
According to the Ministry of Agriculture and Environment, in 2024, Vietnam's agricultural, forestry and fishery export turnover will reach 62.5 billion USD. Of which, the United States is the largest market, accounting for 21.7% of the total turnover, equivalent to 13.56 billion USD. The US's imposition of a reciprocal tax rate of 46% is pushing agricultural enterprises into a difficult situation, facing the risk of losing markets and broken orders.
The most heavily affected products include wood and wood products, seafood, and vegetables. Mr. Huynh Quang Thanh, Vice President of the Vietnam Timber and Forest Products Association, said that about 70% of Vietnam's exported wood products have the main consumer market being the United States. With the new tax rate, many enterprises have received notices to temporarily suspend imports or request to renegotiate prices and contracts.
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| The new US tax policy has a great impact on Vietnam's agricultural export businesses. (Photo: Dan Viet). |
Similarly, in the seafood sector, a 46% tax rate will cause export costs to increase dramatically, reducing the competitiveness of Vietnamese products in the US market and forcing many businesses to consider cutting production or finding new markets.
The chain reaction of this tax does not stop at exporting enterprises but also directly affects millions of farming households and workers in agricultural supply chains.
Response solutions for agricultural export enterprises
Faced with the risk of great losses from the US tax decision, the Vietnamese Government immediately took timely actions to respond, accompanying businesses to find solutions to overcome difficulties.
Immediately after the US announced the tax, Prime Minister Pham Minh Chinh chaired an urgent meeting with relevant ministries and branches and directed the establishment of a Rapid Response Team to monitor, assess the impact and propose solutions. The Prime Minister requested that the authorities remain calm, proactive and flexible in responding, and at the same time listen to and accompany the business community, absolutely not letting people and businesses overcome difficulties alone.
In addition, the Government also appointed Deputy Prime Minister Bui Thanh Son as Head of the Rapid Response Team, coordinating with Deputy Prime Minister Ho Duc Phoc and relevant ministries and branches to proactively negotiate with the US side, taking advantage of bilateral dialogue channels to minimize the impact of the new tax policy.
On the side of the Ministry of Agriculture and Environment, the ministry's leaders will focus on directing localities and agricultural enterprises to proactively adjust production plans, increase the application of high technology in processing, and improve productivity and product quality. At the same time, solutions to optimize costs and reduce prices to increase competitiveness in the international market are also being strongly implemented by the agricultural sector.
One of the key solutions identified by the Government and industry associations is to diversify export markets. Gradually reducing dependence on the US market and expanding to potential markets such as the European Union (EU), Japan, South Korea, the Middle East and ASEAN countries is considered a strategic step to ensure stability and sustainability for the agricultural sector.
At the same time, industry associations such as the Vietnam Association of Seafood Exporters and Producers (VASEP), the Vietnam Timber and Forest Products Association, and the Vietnam Coffee and Cocoa Association are actively coordinating with member enterprises to develop response scenarios. Many enterprises have proactively reviewed contracts, sought new partners, and restructured production processes to adapt to market fluctuations.
The Government also requested ministries and branches to strengthen trade promotion, support enterprises in connecting with markets, and update policy information from major trading partners so that enterprises can promptly adjust their business plans.
Despite facing unprecedented challenges, with the proactive participation of the Government, the consensus of the business community and industry associations, the Vietnamese agricultural sector is expected to overcome this difficult period and continue to maintain its position in the international market.
