Cần Thơ City People's Committee holds dialogue with businesses facing potential 46 per cent US Tariffs on April 14 – Photo nongnghiepmoitruong.vn

CẦN THƠ – Businesses in Cần Thơ that are dependent on exports to the US face losses or even bankruptcy due to a 46 per cent import tariff the US could slap on Vietnamese goods, delegates told a dialogue held between the city administration and businesses affected by the taxes on Tuesday.

Hà Vũ Sơn, director of the city Department of Industry and trade, said goods exports to the US in 2024 exceeded US$192 million, accounting for 11 per cent of the city's total exports.

Major export categories include agricultural products, seafood, apparel, handicrafts, steel, and related goods.

If implemented, the 46 per cent tariff would raise the cost of goods by nearly half, hitting the competitiveness of Vietnamese products against those from countries facing lower rates.

Nonetheless, in the short term US firms may continue sourcing from Việt Nam due to the difficulty in swiftly establishing alternative supply chains.

Nguyễn Văn Bắc, director of Việt Thành Export Garment Co., Ltd, said the US is a major global consumer market and vital to both the Mekong Delta and Việt Nam.

He said that in recent days he has been deeply concerned that the tariffs could significantly affect his company’s operations in the near future.

Phan Hoàng Duy, deputy general director of Cần Thơ Seafood Import Export Seafood JSC (CASEAMEX), said the US is among Việt Nam’s largest seafood export destinations.

CASEAMEX supplies 30 markets, with the US accounting for over half its exports.

The company considers the US its most important market due to its stability and its impact on other regions.

“If the US imposed a 10 per cent tariff on seafood products across all countries, Vietnamese pangasius would likely remain stable due to limited competition. This would minimise disruption and could even benefit Việt Nam’s pangasius industry.”

However, the shrimp industry faces competition from Ecuador, India and Indonesia.

In addition to possible import tariffs, anti-dumping duties and prospective countervailing duties from the US create significant pressure for businesses.

A CASEAMEX representative said the US has imposed a 145 per cent tariff on Chinese goods, which indirectly impacts Việt Nam’s seafood industry.

China ranks among the world’s top two seafood producers and exporters.

If Chinese seafood cannot be exported to the US, China is expected to prioritise its domestic market and other export destinations.

In that case, the volume of Chinese seafood entering other markets would rise and prices would likely drop and it would be harder for Vietnamese seafood exporters to shift to these markets.

But local firms are developing strategies to broaden their consumer base.

During the expected three-month suspension of US tariffs, businesses aim to take advantage of the window to fulfil existing export orders.

At the same time they are working to build stronger ties and expand into markets such as Europe, Japan and South Korea.

Additional strategies include diversifying their customer base, growing the domestic market, training workers to improve skills, cutting costs, and streamlining production to boost internal resilience.

City businesses are also actively exploring new paths to reduce risks if worst-case tariff scenarios materialise.

They hope city authorities will introduce support measures such as reducing land lease rates, speeding up VAT refunds for struggling companies, increasing trade promotions, and helping seafood exporters access new markets.

They also hope Việt Nam–US trade negotiations will succeed. – VNS