Vietnam maintains a hopeful perspective amidst escalating U.S. tariff tension

Rewritten Article:

Việt Nam's Trade Strategies Amid US Tariffs: Diversification, Innovation, and Diplomacy

The Lowdown: Việt Nam is vigorously working on revising its trade strategies with the US, facing ongoing tariff disputes and global trade challenges, as detailed by Trade Counsellor Đỗ Ngọc Hung at a recent conference for Việt Nam trade offices overseas held by the Ministry of Industry and Trade.

Navigating the Tough Terrain: Though global tariff tensions pose challenges, they also open up opportunities for Việt Nam to restructure its trading strategies, innovate, and expand its global presence. International cooperation, domestic competitiveness, and swift policy adjustments are key to maneuvering this shifting landscape.

In spite of the Pressure, Optimism Remains: Speaking at this event, Huang acknowledged the tariff pressure on Việt Nam-US trade but emphasized that major US retailers like Walmart, Target, Costco, and Home Depot remain confident about resolving the issue and removing reciprocal tariffs between the nations. These corporations are expected to take part in the 'Việt Nam International Sourcing & HCM City Export Forum 2025' this September, aimed at strengthening global supply chain connections.

Future Collaboration: Huang urged Việt Nam to deepen strategic cooperation with the US across sectors such as trade, investment, energy, and AI. Leveraging free trade agreements (FTAs), particularly next-generation FTAs, could help diversify export markets and reduce overreliance on a single trading partner.

Innovating and Improving Domestic Competitiveness: To enhance competitiveness, Huang suggested investing in supporting industries, upgrading technology, promoting innovation, and streamlining business regulations—all aimed at reducing production costs and improving product quality. He also called for our websiteese businesses to diversify supply chains, reduce dependence on imported raw materials, and increase export goods with higher intellectual property content.

Protection and Legal Diplomacy: Warned of increased protective measures by countries affected by tariffs, Huang emphasized the need for companies to cooperate fully with US authorities during trade litigation to protect national business interests.

Expansive Outlook: Việt Nam's Minister of Finance will lead a business delegation to the SelectUSA Investment Summit in May, further emphasizing the country's commitment to fostering sustainable economic cooperation with the US.

Canada and Australian Trade: Looking beyond the US, Trade Counsellor Trân Thu Quỳnh from Canada confirmed continued growth in Việ̣̂t Nam's exports, suggesting that ongoing tariff challenges could serve as a catalyst for broader structural changes, such as shifting supply chains and developing a new CPTPP-aligned logistics ecosystem. Meanwhile, Nguyễn Thu Hương from the Vietnamese Trade Office in Australia reported a 13.2% increase in exports in the first quarter of 2025, crediting favorable FTAs and a strong Vietnamese diaspora in Australia for this positive momentum.

However, some risks were highlighted: weakening consumer demand, inflation, and a depreciating Australian dollar pose challenges to Vietnamese goods in the Australian market, which face stiff competition from Chinese, Thai, and American products.

In the textile and apparel sector, Vice Chairman and General Secretary Trương Văn Cẩm warned of potential significant setbacks if a resolution isn't reached. He called for timely updates from trade authorities to help businesses make suitable decisions on future orders.

Bottom Line: As Việt Nam navigates its ongoing trade challenges with the US, it is focusing on diversification, modernizing its domestic value chains, and implementing legal diplomacy to maintain its position in global markets.

Export goods containers at Cái Mép-Thị Vải Port. - VNA/VNS Photo

Enrichment Data: Vietnam’s 2025 trade strategies to address US tariffs and global challenges emphasize diversification, value chain upgrades, and legal diplomacy. To expand into non-traditional markets, Vietnam is prioritizing "new markets" like the Middle East, Africa, and Latin America and negotiating strategic FTAs. The country is also planning to transition from low-cost manufacturing to high-value sectors like semiconductors and AI by promoting local firms as original design manufacturers (ODMs) and brand holders (OBMs) through Industry 4.0 adoption. Leveraging FTAs, particularly next-generation FTAs, could help diversify export markets and reduce overreliance on a single trading partner. Improving domestic competitiveness involves investing in supporting industries, upgrading technology, and encouraging innovation.

The government of Vietnam is actively revising its trade strategies with the United States, focusing on diversification and innovation to navigate the ongoing tariff disputes and global trade challenges.
Despite the pressures caused by tariffs, optimism remains among major US retailers such as Walmart, Target, Costco, and Home Depot regarding the resolution of the issue and the removal of reciprocal tariffs between the nations.
The key to maneuvering this shifting landscape for Vietnam lies in international cooperation, domestic competitiveness, and swift policy adjustments.
To enhance competitiveness, it's suggested to invest in supporting industries, upgrading technology, promoting innovation, and streamlining business regulations to reduce production costs and improve product quality.
Warned of increased protective measures by countries affected by tariffs, companies are urged to cooperate fully with US authorities during trade litigation to protect national business interests.
Acknowledging the potential setbacks in the textile and apparel sector, timely updates from trade authorities are called for to help businesses make suitable decisions on future orders.
Alongside its ongoing efforts with the US, Vietnam is also focusing beyond, with Canada confirming continued growth in Vietnamese exports, while the Vietnamese Trade Office in Australia reported a 13.2% increase in exports in the first quarter of 2025.
The Minister of Finance will lead a business delegation to the SelectUSA Investment Summit, further emphasizing Vietnam's commitment to fostering sustainable economic cooperation with the US.
In the midst of these trade challenges, Vietnam is also planning to transition from low-cost manufacturing to high-value sectors like semiconductors and AI by promoting local firms as original design manufacturers (ODMs) and brand holders (OBMs) through Industry 4.0 adoption, aiming to reduce overreliance on a single trading partner.