Hanoi (VNA) - Global trade tensions continue to present complex challenges, significantly affecting global supply chains. In response, many key Vietnamese enterprises have proactively prepared scenarios to adapt to the evolving landscape, focusing on internal restructuring and aligning with high market standards to ensure sustainable exports.
Maximising internal capacity
In 2025, amid ongoing global market fluctuations, Hung Yen Garment Corporation set its sights on reaching 616 billion VND in total revenue and 50 billion VND in pre-tax profits, with an average employee income target of 12.5 million VND per month.
According to the company’s representative, to meet these targets, it is mobilising its workforce to maximise productivity, aiming to complete orders for the US market ahead of the imposition of potential countervailing duties.
Nam Dinh Textile and Garment Corporation, meanwhile, has outlined a clear strategy to strengthen internal resources and enhance operational efficiency, laying a solid foundation for recovery in the coming years. Their plan includes: achieving 2025 and subsequent annual production and business targets, expanding into export markets and diversifying their customer base, boosting internal supply chain consumption, and ramping up production and export of flame-retardant products.
According to the Vietnam Textile and Apparel Association (VITAS), Vietnamese textile products are exported to 139 markets with a turnover of at least 100,000 USD. In 2024, exports reached 43.6 billion USD, 38.2% of which went to the US, making Vietnam the second-largest supplier to the market after China.
Other major markets include the EU and Japan (each accounting for around 10.5%), China (8%), Republic of Korea (8%), and the UK (1.7%). Consequently, any US-imposed tariffs would significantly impact Vietnam's textile and garment industry.
General Director of the Vietnam National Textile and Garment Group (Vinatex) Cao Huu Hieu noted that Vietnam’s textile sector is highly sensitive to tariff policies and the US -China trade conflict. Future developments will depend heavily on whether the US and China can reach quick agreements. Given this constant state of flux, he stressed the importance of businesses focusing on maximising internal strength.
Leveraging Free Trade Agreements (FTAs)
Currently, the US accounts for 30% of Vietnam’s export market and is its largest single market. According to Vietnam's Trade Counsellor in the US Do Ngoc Hung, American tariff policies may affect several Vietnamese industries. Electronics, including major manufacturers such as Samsung, Intel, and LG - key contributors to Vietnam’s US-bound exports - could see production costs rise, diminishing competitiveness and prompting reassessment of global strategies.
Although some components, such as semiconductors, are exempt from countervailing duties, widespread disruption to electronic supply chains remains a serious concern. In addition, labour-intensive sectors like textiles and footwear are expected to face substantial challenges. These industries, being major exporters and highly sensitive to tariffs, may see demand decline in the US market.
Similarly, sectors such as furniture, seafood, and agriculture are likely to suffer under increased tariffs, leading to rising costs and reduced exports to the US, subsequently affecting Vietnam’s overall export performance.
Given this reality, the Trade Office has recommended that relevant authorities continue diplomatic efforts and step up negotiations to address countervailing duty issues. This includes implementing specific roadmaps to safeguard Vietnam’s trade interests against potential protectionist measures from US President Donald Trump’s administration. Strengthening strategic cooperation with the US in industries such as commerce, investment, energy, and artificial intelligence is also deemed essential to ensuring sustainable bilateral trade.
Mr. Hung also emphasised the importance of diversifying export markets via new-generation FTAs to spread risk and identify alternative markets to the US.
The Trade Office also urged Vietnamese enterprises to focus on enhancing domestic competitiveness through technological upgrades, innovation, regulatory simplification, and infrastructure improvements, to reduce production costs and enhance product quality, ultimately improving their standing in the US market.
From the business side, General Secretary of the Vietnam Association of Seafood Exporters and Producers (VASEP) Nguyen Hoai Nam highlighted that Vietnam is among the top ten seafood exporters to the US. During the current 90-day tariff delay granted by the US, companies are ramping up production and securing favourable prices for raw materials.
VASEP representatives have called for authorities to not only support access to traditional markets such as the US, EU, and China, but also to accelerate trade promotion, market expansion, and export facilitation efforts./.
