Hanoi (VNA) – Vietnam is focusing on boosting domestic consumption and diversifying export markets to ensure sustainable growth in response to risks of high tariffs in major markets such as the US and Europe.
Nguyen Anh Duc, Chairman of the Association of Vietnam Retailers (AVR), cited the National Statistics Office as reporting that domestic retail sales and consumer service revenue reached over 1.7 quadrillion VND (65 billion USD) in the first quarter of 2025, up 9.9% year-on-year, with food consumption making up the most – 35,7%.
He said that gaining a firm foothold in the domestic market of more than 100 million people is critically important to businesses. The figures highlight the significant potential of the domestic market, which, if properly leveraged, could help offset the decline in export orders.
At the same time, efforts to diversify export destinations are being intensified as risks could be mitigated amid the spread of trade protectionism worldwide.
Pablo Arancibia Salazar, a trade representative from Chile's Export Promotion Bureau (ProChile), noted South America, with a combined GDP of 4 trillion USD and a population of 431 million, presents a highly attractive market for Vietnamese products such as aquatic products, wood products, coffee, rice, and cement, all of which are well-received by local consumers.
In Chile alone, Vietnam is currently the 12th largest goods supplier, with exports valued at 1.4 billion USD. Expanding further into the Chilean market was suggested as an opportunity that merits serious consideration.
Meanwhile, Islamic markets were also identified as promising export destinations, albeit strict standards, particularly for Halal certification. In 2024, Vietnam's cashew industry exported 700,000 tonnes of kernels worth 3.8 billion USD, with most shipments meeting Halal and other quality management certificates.
Halal-certified agricultural products of Vietnam hold a special advantage to expand their global market share. The Halal market is extremely large, projected to grow to 10 trillion USD by 2030, with an annual growth rate of some 5.5%, said Vice Chairman of the Vietnam Cashew Association Tran Van Hiep.
To support businesses, proposals have been made for continuing financial assistance, sustaining the 2% cut in the value added tax on essential consumer goods, and devising strong-enough incentives to attractive investment in developing regional-level distribution centres to connect cooperatives and small businesses with supermarkets and convenience stores, thus reducing logistics costs and promoting Vietnamese brands.
At a meeting with Vietnam's trade offices abroad earlier this month, Deputy Minister of Industry and Trade Nguyen Sinh Nhat Tan said the ministry is building a network for helping Vietnamese enterprises access emerging markets, including Halal markets, aiming to reduce dependence on several major markets and enhance resilience against global trade fluctuations./.
Vietnam seeks to diversify markets to reduce export risks
According to experts, US President Donald Trump’s recent signing of an order imposing tariffs on exports from Canada and Mexico, as well as increasing tariffs on products from China, is seen as the beginning of the tariff policies under the Trump administration. This also leaves the possibility of the US imposing tariffs on imports from other countries.
