Accompanying businesses to respond to US tax policies

 

Accompanying businesses to respond to US tax policies

In difficulty, there is always a potential opportunity to restructure, upgrade the value chain and move towards a more modern agriculture on the global trade map.

In the context that Vietnamese enterprises and agricultural products are facing great challenges from the new tax policy announced by US President Donald Trump, Minister of Agriculture and Environment Do Duc Duy provided information on the situation and response solutions in the meeting on the afternoon of April 7 with associations and enterprises exporting goods to the US as well as receiving recommendations and proposals from enterprises.

Government efforts to respond

The Minister said that in recent days, the Party, State and Government have implemented many flexible solutions to respond to changes in US tax policy. Although ministries and sectors have prepared carefully and had contingency plans in advance, the announced high tax rate still surprised many businesses. In fact, even within the US, there are conflicting opinions about this policy, making future developments unpredictable.

Not only is it a matter of tariffs, this policy also involves factors such as the two-way trade gap, non-tariff taxes and many other factors that the United States has a very good understanding of. This has led to many US businesses and trading partners having to suspend or cancel contracts with Vietnam.

Although the Government has made every effort to provide support, Minister Do Duc Duy said that we must always prepare for the worst scenario, including discussions and persuasion with US representatives in Vietnam.

No confrontation, together to overcome difficulties

Faced with great challenges, the Government and ministries and branches have determined the guiding principles as: calm, flexible, close to reality, accompanying businesses and proactively negotiating.

"Vietnam's stance is not to confront, but to seek comprehensive, long-term solutions, with special attention paid to negotiations," the Minister affirmed.

The Government always stands side by side with businesses and will continue to listen and offer advice to find practical solutions. At the same time, solidarity and consensus for the common interests of the industry community and the country will be the decisive factor in this difficult period.

In negotiations with the United States, we need to promote the existing advantages of Vietnamese agricultural products: good quality, competitive prices, not directly competing with US domestic production, and many items have no alternatives.

In addition, it is necessary to see challenges as opportunities to restructure production, industries and export markets. This is the right time to promote the development of high value-added products, towards a more sustainable and high-quality production model. The United States is still one of the large, potential and high-profit markets for Vietnamese agricultural products.

The Minister said that the Ministry of Agriculture and Environment has and will continue to implement solutions previously directed by the Government. In particular, negotiations with US partners such as the US Department of Agriculture and the US Embassy in Vietnam will be strongly promoted, in order to have a common voice with the US Government.

In particular, the Ministry will direct localities, businesses and farmers to maintain production plans without changes during this time. At the same time, it will support businesses in finding alternative markets and continue to record recommendations from businesses and associations to propose to the Government.

In addition, the Ministry will also review technical barriers to both the export and import of agricultural products, especially agricultural products from the United States. The Ministry will also coordinate with businesses to research and develop industries that produce agricultural inputs, such as animal feed and pesticides, to reduce input costs. At the same time, it will encourage deep processing, restructuring production, improving storage capacity, and increasing the competitiveness of goods.

Turn challenges into opportunities

In addition to long-term solutions, the Minister also acknowledged important recommendations from businesses and associations. These opinions will be received and considered for early implementation by the Ministry of Agriculture and Environment, such as: separate negotiations on agricultural tax packages with the United States, which have been initially discussed with the Government and the working group of Deputy Prime Minister Ho Duc Phoc.

Study the possibility of shifting the production chain, for example importing logs from the US, processing domestically, and exporting to China.

Review export taxes on agricultural, forestry and fishery products to markets outside the United States to ensure harmonization of interests.

Propose to the Ministry of Finance to shorten the VAT refund period, creating favorable cash flow for businesses.

Proposing to redefine the concept of "preliminary processing" for exported aquatic products, to ensure preferential tax policies, VASEP has committed to sending an official document soon.

Promote reduction of logistics costs, support businesses in transportation, storage and preservation of goods

Propose a comprehensive support package in case negotiations do not achieve positive results, including credit support, land rent exemption and reduction, tax payment extension, support for farmers in production and cultivation, and establishment of a Technology Development Fund for agricultural production.

The Minister requested that businesses and associations promptly complete petition documents and send them to the Ministry for synthesis and reporting to the Government in a systematic, synchronous and legally-based manner.

Despite facing great difficulties, the message from the Government is clear: not to be passive, not to be drawn into confrontation, but always ready to act with a proactive, responsible and courageous spirit.

With the determination and consensus of all levels, sectors and the business community, the leaders of the agricultural and environmental sectors believe that all will overcome this difficulty, maintain the market and develop sustainably in the future.

According to Nongnghiep.vn

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