Shifting Strategies Amidst New US Tariffs
The recent introduction of new tariff regimes by the United States has presented significant challenges to Vietnam’s export sectors, but companies are actively turning this pressure into a strategic opportunity. Instead of solely focusing on the affected US market, many firms are proactively restructuring their supply chains, enhancing compliance with Environmental, Social, and Governance (ESG) standards, and actively exploring new global markets. This adaptive mindset is aimed at building greater resilience and long-term competitiveness. For instance, Nguyen Tran Thien Thanh, the director of Thien Thanh Binh Trading and Manufacturing, has confirmed that her company is reviewing its supply chain to increase localization and rigorously preparing to meet international ESG standards, which she notes are now a mandatory requirement for entering major markets and a key driver of brand reputation. By diversifying their reach beyond traditional partners, these exporters are positioning themselves for more sustainable growth in a changing global trade landscape.
Diversification and Quality as New Cornerstones
In response to the new market dynamics, Vietnamese exporters are moving away from a strategy of competing solely on low pricing. This proactive and adaptive mindset is evident across various sectors. For Hanfimex, a leading exporter of agricultural products like cashews, coffee, and pepper, the tax disadvantages of exporting to the US have prompted a strategic pivot toward markets with greater logistical and financial advantages, such as those in Asia. Chairman Phung Van Sam stated that the company is also targeting the European Union and specific African nations for future expansion, with a renewed focus on consistent product quality and optimizing supply chain efficiency. This diversification strategy is paying dividends for companies like Thien Minh Wood Company, which has long prioritized the EU market. The company’s vice chairman, Tran Lam Son, noted that their early investment and focus on design and quality to meet EU standards have helped them cushion the impact of recent US policy changes, with EU-bound orders now accounting for the majority of their export volume.
Government Support and Future-Proofing Exports
Beyond the efforts of individual businesses, Vietnam’s trade promotion agencies are also playing a crucial role in creating a more sustainable foundation for export activities. In Ho Chi Minh City, for example, the Trade and Investment Promotion Centre is rolling out a digital trade promotion ecosystem designed to help businesses expand into untapped regions, including the Middle East, Africa, and Latin America. This initiative aims to reduce the country’s reliance on traditional markets and create new avenues for engagement through international trade fairs and direct links with importers. Meanwhile, Do Ngoc Hung, Vietnam’s commercial counsellor in the US, has stressed that despite the new tariffs, major US corporations such as Walmart, Amazon, and Costco continue to view Vietnam as a vital supply chain hub. Their priorities now extend beyond price to encompass sustainability, consistent supply, and traceability, which presents a pivotal opportunity for Vietnamese firms to restructure, automate production, strengthen ESG compliance, and invest in professional brand-building to secure a resilient and sustainable future.
