(Haiphong.gov.vn) - On the afternoon of April 11, comrade Le Trung Kien, Member of the Standing Committee of the City Party Committee, Head of the Hai Phong Economic Zone Management Board chaired the meeting [...]
(Haiphong.gov.vn) - On the afternoon of April 11, comrade Le Trung Kien, Member of the Standing Committee of the City Party Committee, Head of the Management Board of Hai Phong Economic Zone, chaired the program to meet, listen and discuss with businesses in Industrial Parks and Economic Zones about the US's reciprocal tax policy.
In attendance were representatives of leaders of relevant departments, branches and units and leaders of more than 100 production and business enterprises in industrial parks and economic zones in the city.
View of the work.
At the program, comrade Le Trung Kien, Head of the Hai Phong Economic Zone Management Board, said: The impact of the 46% tax rate has greatly affected the competitiveness of the business investment environment of the country and Hai Phong city. Causes concern for businesses inimplementing business strategies. Customers stopped or postponed signing export orders to the US market. Export costs increase, profits decrease, and market share is lost here. It is difficult for businesses to immediately find alternative markets, forcing them to reduce output and labor, and cancel investment plans.
The level of impact could spread further, such as reducing FDI attraction, reducing industrial growth, logistics, exports, and city budget revenue; The domestic supply chain is at risk of disruption; workers lose their jobs, increase social pressure, and need employment and social security support.
Business leaders expressed their opinions at the meeting.
At the meeting, the recommendations of businesses focused on main issues such as: The government negotiates tax reduction with the United States; support income tax reduction for affected businesses; Expanding alternative markets (EU, Japan, Korea); Apply tax incentive policies, temporary fees...
Comrade Le Trung Kien, Head of Hai Phong Economic Zone Management Board, spoke at the meeting.
For the Management Board of Hai Phong Economic Zone, Mr. Le Trung Kien said that the Management Board and Hai Phong city will actively support businesses to diversify and expand new export markets, gradually reduce dependence on the US market, exploit maximum advantages from free trade agreements such as EVFTA, CPTPP, RCEP, etc. new products, increasing productivity and product quality, better meeting strict requirements from the international market. Regularly update information on the latest developments related to trade defense policies, so that businesses can be more proactive in production and business plans.
In addition, continue to invest in strengthening capacity and perfecting traffic, urban, and utility infrastructure systems to enhance the city's outstanding competitiveness in terms of synchronous infrastructure and help reduce logistics costs for businesses. At the same time, accelerate the planning and construction of Hai Phong Southern Coastal Economic Zone and Free Trade Zone to expand economic space and policies to develop competitive strategies for the city.
On the business side, the Head of the Economic Zone Management Board wants businesses to make the supply chain and origin of raw materials transparent. Strengthen cooperation and linkages between FDI enterprises and domestic enterprises to build a more sustainable and proactive domestic supply chain in raw materials and components. Proactively invest in digital transformation and apply new technology in management and production to optimize costs and improve long-term competitiveness. Focus on building a strong brand and improving competitiveness through quality products and good services instead of competing based on low prices. Proactively diversify, expand markets and build effective immediate and long-term adaptation strategies and plans.
According to a report summarizing the import-export situation and assessing the impact of the United States raising the tax rate to 46% for businesses operating in economic zones and industrial zones of the Hai Phong Economic Zone Management Board, through a survey of 64/130 exporting enterprises, the export value was 28.7 billion USD (accounting for 80% of the entire city); Indirect exports to the United States were about 6.11 billion USD, total damage was about 2.81 billion USD (calculation method: damage = export value to the United States × 46% tax rate). The total number of affected enterprises is 64 enterprises that export directly and indirectly through the form of export designation.
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