What are the barriers to exports to the US?

Exports to the United States account for 30% of Vietnam's total export turnover. Photo: N.T.

According to the General Department of Customs, in the first six months of 2024, Vietnam's exports to the United States reached US $ 55.1 billion, an increase of 24% (accounting for 30% of Vietnam's total export turnover), with a trade surplus of US $48 billion, contributing to Vietnam's total trade surplus of US $12 billion.

The Vietnam Trade Office in the United States believes that the United States will continue to be Vietnam's largest export market in the last six months of the year, with the expectation that for the third consecutive year, total export turnover will reach over US $100 billion for the whole year of 2024, exceeding the target set at the beginning of the year.

Vietnam's traditional export strengths will continue to contribute to growth momentum such as textiles, footwear, wooden furniture and interior, electronics, machinery and equipment, etc.

In particular, after a period of stagnation, wood and wood products have grown again at an impressive rate in the first five months of 2024 (22.9% while other countries grew at an average of 5%).

In particular, Vietnam's footwear exports as of May 2024 reached US $3.5 billion, an increase of 10.7% over the same period in 2023, ranking second in footwear and handbag exports to the United States.

According to Mr. Do Ngoc Hung, Commercial Counselor, Head of the Vietnam Trade Office in the United States, this result was due to increased market demand and products in stock being used up. In addition, there is also the need to “stockpile” to prepare for possible fluctuations in the period after the 2025 US presidential election and the US import demand for Vietnamese products in the coming time when winter and the shopping season are returning.

However, in addition to the development of trade turnover between the two countries, the US currently has many barriers for Vietnamese export enterprises, typically trade defense measures through anti-dumping and anti-subsidy investigations and evasion of trade defense tax measures as well as transshipment of goods.

As of June 2024, the United States is the country that initiated the most trade defense investigations against Vietnamese export goods, with eleven cases.

According to Mr. Do Ngoc Hung, the current general trend is that major markets, including the United States, continue to apply trade barriers in terms of technology, hygiene, safety, environment, social responsibility, etc. to protect domestic production and consumers, increasing compliance costs for enterprises producing export goods.

Meanwhile, for a developing and populous country like Vietnam, the above key export industries play an important role in socio-economic development, bringing export surplus to the economy, shifting labor and transforming economic structure.

Therefore, as the United States increasingly tightens import measures, Vietnamese enterprises need to continue to effectively implement the Action Plan towards a harmonious and sustainable trade balance signed in 2019 to gradually balance the trade balance between the two countries, importing goods that the United States can be strong in such as agricultural products (fruits, food, cotton materials for the textile and garment export industry, etc.).

The Ministry of Industry and Trade continues to support and guide enterprises to effectively respond to trade defense investigations by the United States (DOC), coordinate and cooperate with the investigating agency in providing information, receiving inspection delegations at enterprises and fully participating in the steps prescribed by US law, especially in the context of the DOC expanding its authority as well as supplementing regulations on anti-dumping and anti-subsidy investigations (regulations on cross-border subsidies, taking into account factors such as the environment, labor, intellectual property, etc.).

Industry associations and businesses in related industries need to continue to develop in the direction of specialization and modernization; improve product structure, focus on developing products with high added value; apply advanced quality management standards and regulations to enhance the competitiveness of the industry; promote investment in the production of raw materials, accessories, supporting industries, and accelerate the localization process...