Vietnam mulls response to changes in US trade strategy

09:03 | 27/09/2018 Trade

(VEN) - Experts are advising Vietnamese authorities and businesses to adopt flexibility in trade promotion with the United States to tackle emerging challenges posed by US trade policies. 

vietnam mulls response to changes in us trade strategy
Seafood was among the key Vietnamese exports to the US in the first seven months of 2018

The changes in US national security strategy are focusing on intellectual property protection, dealing with trade deficit and fair trade.

According to Nguyen Thang Vuong from the European and American Markets Department of the Ministry of Industry and Trade, the US will increase taxes on various kinds of goods and use non-traditional measures to intensify trade protection.

Under its new trade policies, the US will also reduce foreign direct investment (FDI) in Vietnam and elsewhere. Other countries exporting to the US will devalue their domestic currencies to encourage exports, creating pressure on Vietnamese goods.

Vietnam is one of the top six countries posting trade surpluses with the US. Data compiled by the US International Trade Commission for 2017 show a trade deficit of US$38.3 billion with Vietnam. The administration has explored the reasons behind the trade surplus recorded by 16 countries exporting to this market, and its findings could result in restrictions on imports from Vietnam.

Experts are advising both businesses and state authorities to prepare carefully, especially in terms of trade promotion, to meet these challenges.

Tran Kim Oanh, Director of the Investment Promotion Center for Industry and Trade under the Vietnam Trade Promotion Agency (Vietrade), affirmed that the agency would support business efforts to penetrate the US market.

Specifically, she said, Vietrade will provide companies with information about the US market; maintain coordination with experts to help firms overcome export difficulties; and organize meetings between domestic businesses and US importers. Vietrade will also help Vietnamese businesses join US distribution chains.

Tran Kim Oanh said she is fully aware of the difficulties facing domestic businesses in penetrating American distribution chains. In her opinion, businesses need to take the initiative in improving their manufacturing capacity and maintain stable product quality. Vietrade is willing to help businesses participate in US production chains in Vietnam, beginning with the supply of materials. The agency will also assist businesses in building brands and accessing new technologies to reduce production costs and meet strict requirements of the US market.

Vietrade will coordinate with Google to organize training (30 businesses per class) to help firms use the internet to

find importers and analyze information about the US market.

Viet Nga