Enterprises urged to turn risk into competitive advantage

There are added risks in terms of trade documentation, customs valuation, and other import adjustments

- By Bich Ngoc

There are added risks in terms of trade documentation, customs valuation, and other import adjustments

Amid growing volatility in the international trade environment, the United States’ current tariff policy continues to create a major turning point, requiring a flexible and coordinated response from both Vietnamese regulators and the business community.

According to Dr. Tran Ngoc Anh from Indiana University, the global trading landscape is no longer operating under a stable World Trade Organization rules-based framework, but instead becoming more dependent on power dynamics and geopolitics.

“Vietnamese businesses need to keep in mind that the current US tariff policy is only temporary, the Iran conflict is constraining the US, and the Agreement on Reciprocal Trade is the key factor in maintaining export security,” Anh said at a seminar on the topic in late March in Ho Chi Minh City.

He emphasised that corporate leadership must immediately diversify export markets by leveraging trade agreements such as Comprehensive and Progressive Agreement for Trans-Pacific Partnership and European Union-Vietnam Free Trade Agreement, while restructuring supply chains to raise the local value content. “A company’s survival does not depend on how high tariffs are, but on its ability to adapt to changing tariff conditions,” Anh said.

Meanwhile, Cao Thi Phi Van, deputy director of the Investment and Trade Promotion Centre of Ho Chi Minh City, noted that the 150-day policy should be viewed as a transitional phase in US trade administration.

“The fact that the measure is temporary does not mean policy stability. As the policy is being implemented on a broad scale, closely monitoring developments and preparing scenarios for the post-150-day period has become particularly important, especially for sectors highly dependent on the US market and supply chains with complex structures,” Van said.