With the potential for increased global trade tensions looming, Vietnamese export businesses are mobilizing to adapt strategically to maintain their competitive edge. Early signs of optimism were evident from businesses like those located in Khanh Hoa, where the province reported significant export activities with over $200 million generated just in January 2025. This reflects not only the resilience of local businesses but also their proactive approach to market fluctuations and trade dynamics.
According to ANTIV, the export growth of marine products, ships, and coffee from Vietnam has been on the rise, yielding positive results amid global uncertainties. Indeed, marine product exports alone saw an appreciable increase to approximately 11,000 tons, worth over $72 million, marking a 14.8% increase year-on-year. Investments aimed at improving machinery efficiency and modernizing production techniques underpin this growth, as businesses look to climb to a target export value of $2.15 billion for the calendar year.
Yet, the industry remains cautious. There are calls for the Vietnamese government to streamline the licensing processes and offer flexible policies, enabling exporters to explore new market opportunities and sustain their operations amid the flux of international trade.
The urgency to innovate and modify business strategies is underscored by wider geopolitical tensions, particularly those between the United States and China. Under the administration of former U.S. President Donald Trump, trade policies shifted dramatically, imposing stringent tariffs on imports, including those from Vietnam. This pressure compels exporters to adjust their approach. Pham Van Viet, CEO of Vietnam’s leading textile company, Viet Thang Jean, highlighted the company’s proactive measures to limit dependence on the U.S. market, which constitutes about 45% of their export market share.
Viet has charted out two primary strategies to bolster resilience against potential tariffs. This includes diversifying their export markets away from the U.S. by establishing partnerships with new clients and adjusting pricing to absorb any costs resulting from rising resource prices.
Despite these challenges, the aluminum industry is encountering its own hurdles. Nguyen Minh Ke, President of the Vietnam Association of Shaped Aluminum, noted the adverse consequences of the U.S. imposing tariffs of 25% on aluminum and steel. This policy directly threatens the domestic producers, leading to fears of reduced orders and profit margins as their primary market, the U.S., accounts for around 60% of aluminum exports.
Every business sector is feeling the pinch. To combat this, the aluminum association has been analyzing risks and preparing its members for market expansions, emphasizing the wisdom of not remaining too dependent on any single market, particularly the U.S.
‘‘We have advised members to prepare for diversification, especially as we cannot afford to only rely on the American market,’’ Ke pointed out, reflecting the growing sentiment among exporters.
Economics expert, PGSTS Dinh Trong Thinh, acknowledged the need for closer collaboration between the government, trade associations, and businesses for coordinated responses to trade dynamics. He posits measures, such as bolstering promotional activities to aid businesses in finding new markets, will mitigate risks associated with reliance on individual markets.
Thinh advocates for enhancing domestic production capabilities and greening the supply chain, recommending Vietnamese companies to adhere to international market standards. He recognizes compliance as pivotal for facilitating trade and avoiding potential punitive measures from larger economies.
Overall, the signals are clear: diversification of export markets, adherence to regulations, and continuous efforts to improve product quality are no longer just options but absolute necessities for survival and growth. According to government officials, including Ngo Chung Khanh from the Ministry of Industry and Trade, the pressing reality of global trade dynamics shows Vietnam must diversify its market strategies instead of relying heavily on the U.S. markets, which currently represent 30% of their total exports.
Recent meetings reaffirm the necessity to explore alternative export markets, particularly in the European Union, which has vast untapped potential. Vietnam must leverage its existing free trade agreements to transport goods more effectively to these prospective markets.
With Vietnam watching its export businesses navigate and adapt to the unpredictable nature of global trade, the concerted pressure for innovation, flexibility, and market expansion continues to shape the future of its economic practices. Global trade tensions may present challenges, but they also inspire Vietnamese businesses to assess and redefine their export strategies for enduring success.