US tariffs prompt adjustment in Vietnamese export tactics
In the ever-changing global economic landscape, Vietnamese businesses are demonstrating remarkable adaptability. Recently, the Ministry of Finance (MoF) and over 100 Vietnamese enterprises participated in the SelectUSA Investment Summit 2025 in the United States, signalling a proactive approach to navigating new tariffs and market challenges.
Amidst this shifting landscape, the focus is on diversification. Export businesses are being encouraged to expand into new markets and sectors to reduce dependence on a single market. Vietnamese businesses are adapting by investing in local supply chains, exploring new export markets, and innovating to maintain competitiveness.
To strengthen operational resilience, six strategic priorities have been identified:
- Diversification of Markets and Sectors
- By leveraging Vietnam's strategic trade partnerships and Free Trade Agreements (FTAs), businesses can enhance their participation in global trade.
- Investing in emerging sectors like technology, renewable energy, and healthcare can help diversify revenue streams.
- Investment in Innovation and Technology
- Adopting artificial intelligence and digital technologies can improve operational efficiency, supply chain management, and customer engagement.
- Participating in government initiatives to build high-speed infrastructure can enhance connectivity and logistics.
- Logistics and Supply Chain Optimization
- Strengthening partnerships with international logistics companies can improve delivery times and reliability.
- Implementing digital logistics solutions can enhance efficiency and reduce costs.
- Institutional and Regulatory Compliance
- Ensuring compliance with evolving legal and regulatory frameworks is crucial, particularly as the government consolidates provinces and streamlines bureaucracies.
- Financial Resilience
- Exploring financing options through both domestic and international channels can help businesses maintain financial stability.
- Talent Development and Retention
- Investing in training programs can enhance the skills of the workforce, particularly in emerging sectors.
Early investment in the EU market by companies like Thien Minh has proven beneficial, serving as a cushion against recent US policy changes. To seize this opportunity, Vietnamese businesses are advised to join industry-specific international trade fairs, automate production, strengthen ESG compliance, and invest in professional brand-building.
Leading exporters like Hanfimex Vietnam Group are shifting towards markets with logistical and financial advantages, such as Asia, the EU, and certain African nations. Nguyen Tran Thien Thanh, director of Thien Thanh Binh Trading and Manufacturing, is reviewing the supply chain, increasing localisation, and preparing to meet ESG standards.
Hanfimex is focusing on consistent quality, optimising supply chain efficiency, and enhancing trade promotion efforts tailored to specific market characteristics. The digital trade promotion ecosystem, launched by the Trade and Investment Promotion Centre of Ho Chi Minh City, aims to help businesses enter target markets through international trade fairs, direct links with distributors and importers, and by accelerating digital transformation in trade promotion.
However, the latest tariff regime has added challenges for Vietnam's export sectors. Many firms are using this moment to restructure supply chains, with some like Thanh aiming to shift focus to the EU, Japan, and Taiwan if the US becomes less favourable. Thien Minh Wood Company has steadily maintained its foothold in the EU, a strategy now delivering clear benefits.
Do Ngoc Hung, Vietnam's commercial counsellor in the US, emphasized that major corporations like Walmart, Amazon, and Costco are expanding their presence in Vietnam, prioritizing sustainability, consistent supply capacity, and source traceability. ESG compliance is a mandatory requirement for entering major markets and a growing driver of supply chain transparency.
By focusing on these strategic priorities, Vietnamese businesses can enhance their operational resilience and thrive in a fragmented global market.
- Recognizing the benefits that early investment in the EU market can provide, Vietnamese businesses are encouraged to adopt similar strategies and broaden their investment opportunities in other markets, such as technology, renewable energy, and healthcare, to further diversify their revenue streams and maintain financial stability.
- With major corporations like Walmart, Amazon, and Costco emphasizing sustainability, consistent supply capacity, and source traceability, Vietnamese businesses should prioritize ESG compliance to meet mandatory requirements for entering major markets, strengthen their supply chains, and establish a competitive edge in the global business landscape.
