Vietnam: Trump fees can reduce the export to America by a third

Vietnam estimates that her exports to the United States could fall by a third, if the high customs announced by President Donald Trump, according to an internal evaluation conducted by official bodies in the government. Customs duties of 20% and 40% can lead to a reduction in $ 37 billion export income, and damage to most of the most important industries in Vietnam, such as electronics, machinery, clothing, shoes and furniture, according to a document set by the Premier’s consulting council in Fam Minh Cennia, and seen by “Bloomberg”. This estimate is assumed that Vietnamese companies will bear the full cost of customs duties, according to a person informed of the numbers, adding that it is possible that the importers will also bear part of this burden. Vietnam technology in the storm AIN indicates that the technological sector will be most affected, with estimates of its exports of approximately $ 15 billion, pointing out that customs duties are a ‘direct threat to the sustainability of the electronic supply chain’. According to the official data, the total value of Vietnam’s exports to the United States amounted to approximately $ 120 billion. The report contains the date of July 11, approximately a week after Trump’s announcement of a commercial agreement with Vietnam, and was drawn up by a research unit from the Prime Minister FM Minh Cennia Consultative Council. Vietnam did not officially confirm after the customs were declared by the US president, and so far the United States or Vietnam has not unveiled the official details of the agreement. The Vietnamese Foreign Ministry did not immediately respond to a request for suspension. Trump said the United States will impose 40% of customs on the goods recharged by Vietnam, a step aimed at reducing the redirection of Chinese goods across the country in Southeast Asia. Vietnam and China’s partnership has put this step in Vietnam in a difficult situation, as China is its largest commercial partner, and the most important source of imported ingredients used in products such as “air bodies” and phones exported to the United States. The United States has not yet clarified how to classify the recharge goods, or the mechanism to apply the graphics of 40%. The internal document issued by Vietnam contains extraordinary explicit phrases, and remembers that the US Customs Policy is aimed at combating China’s rise. According to the report, Trump uses these fees as a way to “reduce the rapid growth of China and determine the position of the United States in return.” Bloomberg previously reported that Vietnam leaders were surprised by Trump’s announcement and is currently trying to reduce customs duties. Agreements and messages before the start of the implementation of the fees Since then, Trump announced that commercial transactions with Indonesia, the Philippines and Japan were prior to August 1 related to fees to commercial partners before 1 August, the date on which high US fees are within the implementation. Initially, Trump threatened to impose customs of 46% on Vietnam, which is a prominent export power, and last year the third largest trade surplus in the world recorded with the United States and is one of the highest percentages that Washington targeted among the most important trading partners. Vietnam is controlling the origin of an attempt to address US concerns about the so -called ‘goods of goods origin’, and the Vietnamese ministry has taken greater measures to protect the brand ‘made in Vietnam’ and fight the regulations. Under the new guidelines issued by the ministry, clearer rules will be set to determine the content and origin of the products. The guidelines include procedures to determine the added value rate to which Vietnam contributes, and to determine the places of the implementation of the basic stages of the production process. It also provides for the creation of an inspection system and the imposition of sanctions on the placement of inaccurate signs. The internal document highlights the challenges Vietnamese companies face to explain the terms of the agreement. The need to make more efforts to “clarify how to calculate the percentage of local content and persuade the United States to take the share of imports from America and from markets with a clear origin when determining the country of origin.”