On the morning of April 18th, the Management Board of Ho Chi Minh City High-Tech Park (SHTP) held a conference on “Ho Chi Minh City High-Tech Park facing the impact of US tariffs”, to analyze and discuss the impacts of tariff policies on the high-tech business community in Vietnam.
The conference was attended by businesses, policy makers and experts
At the conference, experts, businesses and policy makers discussed and proposed a number of solutions to respond to the 46% reciprocal tax rate of the US on goods from Vietnam such as: Restructuring products, diversifying export markets, improving internal capacity and increasing support from State agencies.
According to MSc. Pham Binh An, Deputy Director of the Ho Chi Minh City Institute for Development Studies, the US is among the export markets of Vietnam with continuous growth over the years, the commercial goods between the two countries are not competitive but complementary.
The new US tariffs have had an impact on the economy of Vietnam in general and Ho Chi Minh City in particular, some impacts were identified such as exchange rates, FDI capital flows, import and export, industrial production, employment, etc.
MSc. Pham Binh An, Deputy Director of the Ho Chi Minh City Institute for Development Studies, shared at the conference
“For Ho Chi Minh City, the city's key export products are also strongly affected by the reciprocal tax imposition, such as: Electricity - electronics, textiles, footwear, wood, agricultural products, processed foods, etc. When these products are subject to high taxes, businesses will face difficulties in consumption, export revenue will decrease, and at the same time, there will be a chain reaction affecting industries in the supply chain such as raw material suppliers and supporting industries,” MSc. Pham Binh An assessed.
Assoc. Prof. Dr. Le Quoc Cuong, Deputy Head of the Ho Chi Minh City High-Tech Park Management Board, said that the US's reciprocal tax rate of 46% for Vietnam is the highest in the world and will certainly have a strong impact on the Vietnamese economy, especially high-tech products.
However, the new US tariff policy is not only a trade barrier, but also a catalyst for the restructuring of global supply chains and geostrategic shifts in core industries.
In that context, Ho Chi Minh City is facing a strategic moment to reposition its role in the Southeast Asian economic space, restructure the export growth model, promote industrial restructuring, protect jobs and improve adaptability to external shocks.
At the same time, this is also an opportunity for Ho Chi Minh City to accelerate the transition to a green, digital, self-reliant economy, restructure the export market and improve product quality.
"SHTP affirms its commitment to accompany the business community in this volatile period, and calls for close coordination between the government, businesses and consulting organizations to maintain the pioneering role of the High-Tech Park in innovation and sustainable economic development", Associate Professor, Dr. Le Quoc Cuong emphasized.
Assoc. Prof. Dr. Le Quoc Cuong, Deputy Head of the Management Board of Ho Chi Minh City High-Tech Park, spoke at the conference.
At the conference, experts also said that the new tariff policy is becoming a strategic tool in the global economic and technological competition. This issue poses great challenges for developing countries like Vietnam, which is strongly attracting investment capital into the high-tech sector.
Some major impacts include: Increased export costs (high-tech products and components from Vietnam exported to the US may be subject to higher taxes); repositioning strategies of FDI enterprises (some foreign-invested enterprises (FDI) may be forced to adjust their production and business strategies, shift markets, and relocate production facilities); increased barriers for domestic enterprises (Vietnamese enterprises will face many obstacles, slowing down the process of international integration).
Bui Tuan
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