Dong Nai proactively responds to potential U.S. countervailing tariffs

(ĐN)- Vietnam recently concluded its second round of negotiations with the U.S. over a proposed 46% countervailing duty (CVD) on Vietnamese exports. Dong Nai Province has promptly developed response scenarios and made policy proposals to the central government to support local industrial enterprises.

According to a survey by the Dong Nai Industrial Zones Authority, over 95% of 137 companies reported impacts from the announcement, even before the tariffs take effect. The textile, garment, and footwear sectors saw order reductions of 20–50% as U.S. buyers shortened delivery schedules or cut volume.

Several foreign-invested companies have paused expansion plans pending the final decision. The U.S. is Dong Nai’s largest export market, accounting for over 32% of its total export value. If the tariff is implemented, it could severely affect job creation, investment, and the province’s double-digit growth target for 2025.

Dong Nai has crafted three response scenarios based on hypothetical tariff rates of 10%, 20–25%, and 46%, using export-import data and assessing impacts on labor and investment.

Proposed solutions from the Department of Industry and Trade include urging the Ministry of Industry and Trade to defend Vietnam’s trade interests, providing training for businesses on accessing the U.S. market, requesting the Ministry of Finance to consider tax relief on imported raw materials, encouraging businesses to upgrade technology, adopt digital transformation, and explore new export markets such as Europe, Japan, ASEAN, the Middle East, and Latin America.

Vice Chairman of the Provincial People’s Committee Duong Minh Dung reaffirmed the province’s support for businesses through trade promotion, market diversification, and timely policy proposals. He also urged companies to modernize production to meet diverse global demands and ensure sustainable growth.

Reported by N.Lien