VCCI Chairman Vu Tien Loc. Photo: VNA

He said the products subject to tariffs increase are not of Vietnamese advantages, thus immediate impact on Vietnamese exports is not significant. On the positive side, Vietnamese businesses could benefit from opportunity in the US market as Chinese alternatives face high taxes and similarly in China. However, Chinese goods that are difficult to enter the US market will switch to other markets, including Vietnam, causing hefty trade deficit and complex domestic competition. Vu Tien Loc said that local businesses should watch market developments closely and prepare for adjustment while seeking for new outlets and supply sources. They should invest more on production technology to improve competitiveness and take advantage of the Industry 4.0.