Global trade tensions are becoming increasingly complicated, which has been impacting major trading partners of Vietnam. How will this affect Vietnam’s export activities?

It is clear that the latest moves from many countries’ trade policies are creating obstacles for Vietnam’s export activities. First, tariff adjustments in their import policies cause instability for Vietnamese businesses.

Additionally, if trade tensions escalate, Vietnamese businesses may be imposed with stricter controls for being considered as a transshipment point to avoid taxes, which could also affect the competitiveness of Vietnamese products. Moreover, non-tariff barriers, such as technical standards, or labor and environmental regulations may also become more tightened.

As a key export of Vietnam, durian brought in a record export value of almost US$3.3 billion in 2024, up US$1 billion plus from 2023 - photo: VNA

Despite these obstales, this offers an opportunity for Vietnamese businesses to restructure their production models. Taking advantages of the free trade agreements (FTAs) that Vietnam has signed could also help businesses overcome obstacles and maintain their competitiveness.

In the current context, what solutions should Vietnamese businesses produce to adapt to these challenges and maintain their export growth and competitiveness?

In the short term, the first solution should be to increase imports and adjust selling prices to cope with tariffs. Importing large quantities of goods helps businesses avoid higher costs due to newly-imposed import duties while taking advantage of lower-priced supplies in the short term.

In the long run, one typical solution could be shifting production and restructuring supply chains. In addition to increasing imports and adjusting prices, businesses should proactively reassess their production strategies to minimize the impact of tariff adjustments.

Regardless of the solutions chosen, flexible adaptation to the potential of trade wars, which can occur at any time, is crucial. To do so, each business must build a comprehensive plan, using their specific situations and characteristics as a foundation to minimize negative impact of a trade war as much as possible.

What is the role that management agencies, specifically MoIT, play in ensuring sustainable exports for businesses?

The changes in tariff barriers from trading partners are inevitable and pose significant challenges for Vietnamese businesses. In this context, the MoIT plays a central role in determining orientations, supporting businesses, and ensuring national economic interests.

Textile and garment businesses seize early-year opportunities while strategizing for global trade tensions to sustain growth

Some important solutions include enhancing forecasting and trade negotiation capabilities, especially forecasts and analysis of trends in key export markets to help businesses develop appropriate business strategies; at the same time, participating in bilateral and multilateral negotiations to protect the interests of Vietnamese businesses and taking full advantages of tariff incentives from FTAs to exploit export markets.

Additionally, the MoIT should help businesses adapt to changes. Businesses need to be provided with timely and accurate information to respond effectively to new tax adjustments. The ministry can organize training and guiding programs on rules of origin, technical standards, helping businesses meet new requirements and continue to benefit from tax incentives. Also, the ministry should promote policies on supporting domestic production, connect with new partners to diversify export markets, and strengthen protections for businesses against trade defense measures to protect the interests of Vietnamese enterprises.