Rewritten Article:
Minister advocates for trade transformation in agriculture sector, expresses approval for American agricultural imports.
Vietnamese businesses need to beef up their game to stay competitive in the US market, especially with the potential threat of high tariffs. Minister Đởng Vû̃ng Đạ̃t warned of these looming restrictions at the Vietnam-US Agricultural Trade Promotion Conference, emphasizing a need for action.
The US has been a significant player in Vietnam's agricultural export scene. In 2024 alone, exports to the US amounted to over $13.7 billion, accounting for 22% of the total sector's export value. The first four months of 2025 saw a further increase to $4.34 billion, marking a 10.2% year-on-year growth.
Key export products such as wood and wood products, seafood, cashew nuts, pepper, and fresh fruit have carved out a niche in the US market, appreciated by American consumers. The US holds a 20.5% market share, followed by China, the EU, and Japan. However, the US is considering tariffs of up to 46%, threatening the profitability of Vietnamese exports.
In response, the government has taken swift action, launching action plans, engaging in negotiations, and organizing a business delegation to the US this June. Over 40 enterprises have already registered, with a projected $2 billion worth of raw material imports.
Despite these efforts, Minister Đạ̃t highlighted the holes in Vietnam's supply chain management, describing it as fragmented, non-transparent, and lacking in adherence to international standards for labor, environment, and traceability. This increases the risk of product rejection and expensive trade investigations.
So, what can businesses do?
Embrace Deep Processing and Green Logistics
Investing in deep processing and green logistics not only strengthens competitiveness but also safeguards against potential trade wars.
Strawberries are dried in labs to make high-value products. Minister Duy called on enterprises to increase investment in deep processing technologies, cold chain logistics and quality control systems. - VNA/VNS Photo
By implementing deep processing technologies, businesses can craft higher-value products from raw materials, catering to diverse consumer preferences. This isn't just about adding value but also widening product ranges.
Green logistics helps cut down on environmental impact and operational costs, while maintaining product quality and ensuring timely delivery—both crucial factors for perishable items.
Strengthen Quality Control Systems
Ensuring products meet U.S. quality and safety standards can significantly reduce the risk of rejection upon arrival. A consistent, reliable product quality instills trust among consumers and businesses, fostering long-term partnerships and market presence.
Other strategies include:
- Building strategic partnerships with U.S. businesses to better understand the market and its demands.
- Implementing origin tracking systems to promote transparency and assure compliance with U.S. regulations, potentially leading to tariff exemptions for certain products.
Minister of Agriculture and Environment Đỗ Đức Duy speaks at the conference. - Photo congthuong.vn
By following these strategies, Vietnam's agricultural businesses can weather potential trade challenges and thrive in the US market. As Minister Đạ̃t puts it, significant changes and proactive actions are the keys to unlocking new opportunities and overcoming obstacles.
- The US government is considering imposing tariffs of up to 46% on certain Vietnamese exports, which could impact the profitability of businesses.
- Minister Đởng Vũng Đàtcallsoned for swift action from the government to address these potential threats and maintain competitiveness in the US market.
- In June 2024, the government organized a business delegation to the US, with over 40 enterprises registering and a projected $2 billion worth of raw material imports.
- Investing in deep processing technologies and green logistics can help businesses create higher-value products, cater to diverse consumer preferences, and reduce environmental impact.
- Strengthening quality control systems and ensuring products meet US quality and safety standards can significantly reduce the risk of rejection and foster long-term relationships with consumers and businesses.
- Minister of Agriculture and Environment Đỗ Đức Duy emphasized the importance of building strategic partnerships with US businesses to better understand the market and its demands.
- Implementing origin tracking systems and adhering to international standards for labor, environment, and traceability can lead to tariff exemptions and increase transparency in Vietnam's agricultural supply chain.
