Dong Nai responds to US tariffs

(ĐN)- On April 4, 2025, Dong Nai’s Department of Industry and Trade assessed the potential impact of the US's proposed 46% tariff on Vietnamese imports. The US makes up nearly one-third of Dong Nai’s export market, so the new tariff policy is expected to deal a major blow to the province’s exporters.

Previously, US tariffs on Vietnamese goods ranged from 0–25%, depending on the product category. A sudden hike to 46% would severely undercut the competitiveness of Dong Nai’s key export sectors, including textiles, footwear, wood products, electronics, auto parts, and agricultural goods, against rivals from countries with lower tariffs.

Dong Nai set a target of double-digit economic growth for 2025, with export turnover projected to increase by 10%, reaching nearly US$26.4 billion. However, under the new US tariff policy, Dong Nai’s exports to the US may decline by 30–50%, equivalent to a drop of US$2.3–3.8 billion. This would reduce the province’s total export turnover to an estimated US$22.5–24 billion, a year-on-year decrease of 9–15%.

The impact could force businesses to scale down production or shift operations to other countries. Foreign-invested enterprises (FDIs) might also consider relocating due to reduced export advantages, while related sectors such as logistics and trade services would also feel the strain.

Dong Nai is identifying challenges and preparing solutions. The province plans to intensify trade promotion efforts, especially through international e-commerce, and assist businesses in finding alternative export markets, including Europe, Japan, ASEAN, the Middle East, Latin America, Australia, and New Zealand.

In the long term, businesses will be encouraged to reduce dependence on contract manufacturing and focus on developing high-tech or branded products to avoid price-based competition. Dong Nai will also support supply chain optimization, promote domestic supply networks, and seek input materials from countries unaffected by high tariffs to cut production costs.

Reported by K.Minh