Hanoi urges businesses to prepare for trade tensions


FILE - A man walks past a row of T-shirts printed with Vietnamese flags in Hanoi, Vietnam on July 30, 2020.(AP Photo/Hau Dinh, File)

Ho Chi Minh City: Vietnamese enterprises are being advised to put in place proactive business strategies to navigate and overcome challenges amid fluctuations caused by changes in US trade policies and escalating global trade tensions.

In a bold move, the United States has implemented a 10% additional tariff on imports from China, signalling trade tensions between the world’s two largest economies.

China, the leading exporter globally, maintains a substantial trade surplus with the United States.

As a result, the new tariff is expected to have far-reaching effects on China, the United States and other economies worldwide, according to Tran Thanh Hai, deputy director of the Import-Export Department under the Industry and Trade Ministry.

The goods affected by the additional tariff include electrical equipment, electronics, machinery, household appliances, cars, textiles, footwear and agricultural products.

The imposition of the new tariff would likely disrupt global supply chains, causing shortages of raw materials and price fluctuations.

Additionally, with reduced exports to the United States, China might seek to redirect its goods to alternative markets, putting pressure on countries such as Vietnam to absorb the excess.

Hai urged domestic businesses to closely monitor market fluctuations and the political and social factors that influence trade, enabling timely and effective responses.

Adopting systematic investments aimed at long-term development, particularly focusing on enhancing human resources through improved management and business capabilities should be prioritised, he added.

Hai also encouraged Vietnamese entities to leverage new technological advancements, especially artificial intelligence, in management processes, customer acquisition and market expansion. — Viet Nam News/ANN

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