Global trade policy shifts and geopolitical tensions present a moment of pause, but not one of complacency. Temporary windows like this could serve as a golden opportunity for Vietnamese businesses to reassess their strategies and adapt to a rapidly changing landscape.

Truong Huu Ngu, managing partner, Vilasia

In times like these, Vietnamese businesses can be quick to react – part anxious, part adaptive. Many are actively tracking developments and seeking opportunities even amid turbulence. This period may well mark a turning point, prompting Vietnam to reduce overdependence on single markets, diversify its trade portfolio, and build stronger internal capacities.

How do businesses truly prepare for this unpredictable terrain? The answer lies in both legal readiness and strategic foresight. One of the most immediate concerns for exporters is contract management. Companies must carefully revisit contracts with US importers to ensure there are clauses addressing force majeure or hardship due to unforeseen changes.

Terms related to pricing adjustments in the face of external shocks should also be evaluated. Just as vital are upstream contracts with suppliers – changes in input costs, availability, or origin can have ripple effects that must be accounted for.

Another critical pillar is compliance. Now more than ever, businesses must take trade compliance seriously. This includes thorough documentation of product origin to avoid being flagged for tariff circumvention. In industries like timber and wood products, proof of value addition in Vietnam is key. The United States applies strict rules of origin, including criteria such as substantial transformation and basic assembly is often not enough to qualify.

Moreover, companies must avoid the temptation of engaging in transshipment or unlawful circumvention of duties. Once under investigation, the consequences can be long-term and damaging. US authorities have shown they take violations seriously.

These trade tensions do not just affect local businesses. Many of our foreign clients have expressed concerns as well. Firms manufacturing in Vietnam and exporting to the US now face uncertain tariff exposure and may need to reconsider their supply chain footprints. Relocating facilities or adjusting sourcing strategies takes time, making policy clarity all the more critical.

At this critical juncture, a number of policy interventions could provide timely support to help Vietnamese exporters navigate the volatile trade landscape. First and foremost, streamlining customs procedures would ease the administrative and financial burden on exporters, particularly those facing high import duties. Reducing procedural bottlenecks not only saves time and costs but also improves the predictability of export operations.

In parallel, there is a pressing need to clarify rules of origin. Clear and accessible guidance will enable businesses to ensure compliance with international trade rules, particularly in the context of preferential tariffs and origin-based taxation.

Another area where policy support can make a difference is taxation. Accelerating VAT refunds and considering temporary tax relief measures could enhance cash flow for enterprises under pressure. Furthermore, access to trade financing should be expanded through commercial banking channels. Financial solutions tailored to help businesses diversify into new markets will be instrumental in reducing dependence on a single destination, as the US.

On the enterprise level, companies must prioritise risk management as a core strategy. A foundational step is to strengthen contractual protections, including robust clauses to address hardship or force majeure in the event of sudden regulatory or market changes.

In addition, leveraging financial tools like trade credit insurance and currency hedging can help mitigate exposure to unforeseen disruptions in payment or foreign exchange fluctuations. As businesses seek to remain competitive, cost optimisation will naturally be a focus – but this must be approached with care. Ethical cost management practices, such as restructuring operations or streamlining processes, should avoid triggering labour disputes or reputational harm.

Finally, long-term resilience will require greater investment in value creation. Businesses are encouraged to focus on upgrading product quality, enhancing design, and building distinct Vietnamese brands. By moving beyond cost-based competition and investing in innovation and materials, enterprises can build a more sustainable foundation for global growth.

The truth is, volatility is here to stay. But with the right legal and strategic mindset, Vietnamese enterprises can navigate complexity, remain compliant, and emerge stronger in the long run.