Facing trade hurdles for businesses in the Mekong Delta region

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On the bustling streets of Cần Thơ City, an air of apprehension hangs over the business community. Trần Văn Đức, chairman of the Bến Tre Province Business Association, is one of many business leaders grappling with the impacts of the US's new tariffs on their businesses.

Lately, Cần Thơ has served as a gathering place for the Mekong Delta chapter of the Việt Nam Chamber of Commerce and Industry (VCCI). In March, their conference was held under the theme "Riding the Waves: Navigating New Trade Challenges - O chopped seas and New Horizons for Mekong Delta Enterprises." The gathering aimed to share insights and explore potential solutions for sustainable development amidst the global economic uncertainties.

According to a survey conducted by VCCI Mekong Delta at the beginning of 2025, the Asian economic powerhouse's businesses are braced for a rough ride. More than half (54%) of respondents expect a dip in exports due to the US tariffs' impact.

However, this bleak outlook doesn't deter the likes of Đức. Businesses are pinning their hopes on the Government's negotiations with the US to stumble upon a compromise on the tariffs. Nguyễn Xuân Thành, an economics lecturer at the Fulbright School of Public Policy and Management, believes that the tariffs could potentially drop from the 46% reciprocal rate initially announced by the US. He speculates that the negotiations might result in tariffs plummeting to 20%, or even as low as 10-15%.

In today's interconnected world, establishing a robust verification mechanism for the origin of exported goods is crucial. Thành emphasizes that this is one of the critical factors for Việt Nam in these trade negotiations.

To tackle the short-term challenges, the Government must take proactive steps to support affected businesses and industries. Thành calls for increased scrutiny of foreign companies to thwart tax evasion through intermediary countries. Augmenting tax inspections, particularly for businesses suspected of transfer pricing fraud or those from jurisdictions blacklisted by the US as tax havens, will be key to maintaining fiscal integrity.

Businesses must also adapt and evolve to weather the storm. Thành advises investing in digital transformation, diversifying input sources, and collaborating with US importers to petition for lower tariffs. Diversifying export markets and reducing reliance on the US are also essential strategies.

The chairman of the Bến Tre Province Business Association, Đức, underscores the importance of strong leadership and good governance in these turbulent times. Urging businesses to be proactive, agile, and resilient, he encourages the Government to expedite the implementation of new policies and resolutions that will facilitate business access, improve investment procedures, and optimize the investment environment.

Võ Tân Thành, vice-president of VCCI Việt Nam, reassures that despite the uncertainties in the global economy and a period of extensive institutional reform at home, the recent resolutions from the Politburo offer a strong foundation for businesses to flourish in the coming years. He encourages domestic enterprises, particularly those in the Mekong Delta region, to be adaptable, seizing opportunities as they arise while strategizing for growth.

The Mekong Delta produce industry, comprising seafood, textiles, and agriculture, faces significant challenges due to the new US tariff policy. Among these challenges are the direct impact on business plans, increased import taxes, stringent regulations on product quality and traceability, logistical hurdles, and a lack of market information.

While these obstacles loom large, strategies such as market diversification, cost reductions, and cutting-edge efficiency can pave the way for sustainable development. In addition, government support, trade promotion initiatives, and leveraging emerging opportunities can help Mekong Delta businesses weather this storm with their heads held high.

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

As the US introduces tariffs on Mekong Delta businesses, Đức, chair of the Bến Tre Province Business Association, seeks support from the Government's negotiations with US officials to lower the tariff rates.
The government, to alleviate immediate challenges, should proactively strengthen verification mechanisms, scrutinize foreign companies, and optimize the investment environment through new policies.
In this interconnected world, investing in digital transformation, diversifying inputs, and collaborating with US importers are strategic moves for Mekong Delta businesses to reduce reliance on the US market.
Thành, vice-president of VCCI Việt Nam, affirms that the recent political resolutions provide a strong base for future business growth, even amidst global economic uncertainties and domestic institutional reform.
Facing challenges such as impact on business plans, increased import taxes, and logistical hurdles, Mekong Delta produce industry can pursue sustainable development by navigating strategies like market diversification, cost reductions, and cutting-edge efficiency with the help of government support and trade promotion initiatives.