Hung Yen (VNA) – Following the US’s plan to impose reciprocal import tariffs of up to 46% on Vietnamese imports, many textile and garment enterprises in the northern province of Hung Yen have been closely monitoring negotiations between the Vietnamese and US governments so as to develop appropriate production and business plans.
The US reciprocal tariffs are posing substantial challenges to many key export industries. Though the imposition is being delayed for 90 days, the US still levies an additional tariff of 10% on all imports from most trade partners, raising the total tariff on Vietnam’s apparel imports to about 28% – a great pressure on Vietnamese textile and garment firms.
Making use of the 90-day delay in the implementation, local textile and garment enterprises are accelerating exports to the US market. At the same time, they are actively negotiating with partners to share risks related to the current 10% tariff and potential tax issues after the 90-day period, aiming to manage production costs as efficiently as possible.
Hung Yen is currently home to around 200 textile and garment enterprises, more than 90 of which each employ at least 100 workers. Statistics from the provincial Department of Industry and Trade show that the sector saw favourable business and production conditions in the first four months of 2025. The textile and garment industry recorded a positive performance, manufacturing over 103.3 million products, up 13.42% compared to the same period last year.
Hoang Manh Hung, General Director of Thong Nhat Garment JSC in Tien Lu district, said that the company’s clients are mainly from the US, noting in the first four months, the firm exported nearly 1 million products to the market.
The company received requests from buyers to speed up delivery schedules to make the most of the 90-day delay, Hung added.
According to the General Director, the company has secured orders from the US market through July this year. However, prospects for the 4th quarter remain uncertain.
Therefore, even under the best-case scenario, the volume of orders from the US in 2025 is predicted to decline, he said, noting that the company is accelerating a strategy to improve its value chain, focusing on high-end product lines, investing in modern machinery, and forming production partnerships with other enterprises.
Nguyen Quang Diep, Director of Hong Quang Garment Co., Ltd in An Thi district, warned that if the proposed 46% tariff is imposed, many garment enterprises in Hung Yen could lose their competitive edge. He explained that the textile and garment industry currently operates on thin profit margins of just 5–12% and faces fierce competition from other countries.
To ensure its business and production plans in 2025, the company has taken cost control measures by carefully studying brand standards and market demand to make selective and focused investments.
Additionally, it is partnering with other businesses to expand operations and build self-reliant production capacity, reducing dependence on imports, Diep said.
According to Nguyen Xuan Duong, Vice Chairman of the Vietnam Textile and Apparel Association (VITAS), the Government has instructed relevant ministries, sectors, and local authorities to closely monitor developments, outline possible scenarios, and respond proactively and flexibly—placing emphasis on brand development and exploring new potential markets.
Meanwhile, local authorities and related agencies are ramping up support in areas such as logistics and customs clearance to help businesses expedite shipments during the grace period before the new tariff takes effect.
The province’s departments and agencies have actively supported businesses in making use of the 90-day tariff grace period to restructure their markets, stimulate domestic demand, and establish connections with potential partners.
Simultaneously, efforts have been made to streamline customs and logistics procedures, enhance credit access, and lower production costs. Enterprises are also being updated on the advantages offered by new-generation free trade agreements (FTAs), which serve as a strong legal foundation for sustainable market expansion with reduced vulnerability to political fluctuations.
In the face of increasingly complex trade barriers, Hung Yen’s businesses are required to adopt a clear strategy, concentrating on diversifying markets and products, mastering technology to maximise productivity and quality, and proactively adapting to tariff and environmental challenges./.
