HANOI: Vietnamese exporters are stepping up both short- and long-term strategies to mitigate risks from potential United States (US) import tariffs, following Washington’s decision to delay the new duties for 90 days.
Industry experts say the delay presents a critical window for businesses to restructure operations and boost competitiveness, Vietnam News Agency (VNA) reported.
According to the Vietnam Timber and Forest Product Association (Vietforest), wood exports to the US reached US$8.8 billion last year, accounting for over 50 per cent of the sector’s total export revenue.
Despite the temporary reprieve, Vietforest warned that many businesses remain cautious, urging action to secure market share.
It noted that if foreign-invested enterprises — which contribute nearly 70 per cent of total export earnings — were to withdraw, it could severely impact the entire industry.
Vice President of the Vietnam Cashew Association (VINACAS), Tran Van Hiep said the US remains a key market, with export value reaching around US$1.1 billion in 2024, or over 21 per cent of the sector’s total exports.
Of more than 60 countries importing Vietnamese cashew nuts, the US remains a high-potential market with diverse demand, despite tariff uncertainty. Hiep stressed the need to maximise exports during this window.
For ceramics, the US market accounts for roughly 70 per cent of Binh Duong province’s ceramic export turnover, according to Vice President of the Binh Duong Ceramics Association Vuong Sieu Tin.
He said US tariffs on Vietnamese ceramics have risen from 6 per cent to 16 per cent but remain manageable.
“As a product with limited global competition and fewer investigations by US authorities, Vietnamese ceramics still have an edge,” Tin added.
Meanwhile, fruit and vegetable exporters said the US represents 9 to 10 per cent of their total export turnover, making it their second-largest market after China.
The Vietnam Fruits and Vegetable Association (VINAFRUIT) warned that new US tariffs could undermine Vietnam’s competitiveness compared to exporters from Thailand, Malaysia, and India — all of which benefit from lower tariffs.
VINAFRUIT Chairman Nguyen Thanh Binh said exports to the US rose more than 60 per cent year-on-year in the early months of 2024.
He said the association plans to propose government support to promote alternative markets and offer financial relief, including extended loan terms and interest rate assistance for struggling exporters.
In the short term, many fruit exporters are working with partners to increase shipments during the 90-day grace period to avoid tariff-related losses.
Cashew exporters have also accelerated shipments, with export volume up 30 per cent since early April compared to the same period last year. This momentum is expected to continue until mid-July.
Hiep said VINACAS is supporting businesses in diversifying their offerings to match evolving market demands.
Vietforest added that companies are urgently sourcing affordable raw materials, restructuring costs, and reviewing product codes to prioritise goods that may qualify for preferential US tariffs.
It also identified India, South Korea, Japan and Europe as promising alternative markets.
While challenges remain, Tin said the situation presents an opportunity for Vietnamese manufacturers to reassess capabilities and adopt more efficient production models.
Amid heightened US-China tariff tensions, he added that Vietnam may benefit from increased interest from US buyers seeking alternatives to Chinese imports – particularly for specialised products. – BERNAMA-VNA
