Navigating trade challenges for Mekong Delta enterprises

Navigating trade challenges for Mekong Delta enterprises

The Mekong Delta chapter of the Việt Nam Chamber of Commerce and Industry has held its members’ business conference for 2025 with the theme "Adapting to New Trade Challenges – Opportunities and New Directions for Mekong Delta Enterprises" in Cần Thơ City on May 14.

Trần Văn Đức, chairman of the Bến Tre Province Business Association, speaks about the challenges posed by the US’s new tariffs to Mekong Delta businesses in Cần Thơ City on May 14. VNA/VNS Photo

The Mekong Delta chapter of the Việt Nam Chamber of Commerce and Industry has held its members’ business conference for 2025 with the theme "Adapting to New Trade Challenges – Opportunities and New Directions for Mekong Delta Enterprises" in Cần Thơ City on Wednesday.

It sought to share information and explore solutions for sustainable development amid the global economic uncertainties.

According to a survey conducted by the VCCI Mekong Delta at the beginning of 2025, most businesses expect to face major challenges due to the impact of US tariffs.

More than 54 per cent expected a reduction in exports.

Trần Văn Đức, chairman of the Bến Tre Province Business Association, said businesses are awaiting the results of the Government’s negotiations with the US on tariffs.

Nguyễn Xuân Thành, am economics lecturer at the Fulbright School of Public Policy and Management, said negotiations could bring tariffs down from the 46 per cent reciprocal rate the US announced.

He suggested that Việt Nam might negotiate tariffs down to 20 per cent, or even 10-15 per cent.

One of the critical elements for Việt Nam in these negotiations is to establish a transparent mechanism for verifying the origin of exported goods, he said.

In the short term the Government must support affected businesses and industries, ensuring they overcome difficulties, he said.

It should closely monitor foreign companies to prevent tax evasion through intermediary countries, strengthening tax inspections, particularly of businesses suspected of transfer pricing fraud and those from jurisdictions flagged by the US as tax avoidance hubs, he said.

He recommended that businesses should invest in digital transformation, diversify input sources to minimise risks and collaborate with US importers to advocate for lower tariffs.

Diversifying export markets and reducing reliance on the US are also essential, he added.

Đức of the Bến Tre Province Business Association stressed the importance of enterprise governance and leadership in these challenging times.

Enterprises must proactively adapt, stabilise and grow, he said.

He urged the Government to expedite implementation of new policies and resolutions to facilitate business access, improve investment procedures and optimise the investment environment.

Võ Tân Thành, vice president of VCCI Việt Nam, said there are currently numerous uncertainties like global economic factors and a period of extensive institutional reform domestically.

But recent resolutions from the Politburo on streamlining Government machinery, advancing science and technology, institutional reform, and promoting private sector development provide a foundation for businesses to thrive in the coming years, he assured.

In this context, domestic enterprises, particularly those in the Mekong Delta, must be agile, adapting, seizing opportunities and formulating strategies to thrive, he added. 

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