Hanoi (VNA)𒆙 – Vietnamese businesses see opportunities to diversify markets and boost trade in the coming time thanks to 17 free trade agreements (FTAs) that Vietnam has signed and is negotiating with potential markets.

On April 2, President Donald Trump officially announced significant changes to the US trade policy. As the market accounts for 30% of Vietnam's total export turnover, the imposition of a reciprocal tariff of up to 46% will heavily impact many industries in Vietnam. The US market holds 40% of the total export of Vietnam’s footwear sector, valued at over 10 billion USD. Therefore, the high tariff rate is certain to stall export activities. Phan Thi Thanh Xuan, Vice Chairwoman and General Secretary of the Vietnam Leather, Footwear and Handbags Association (LEFASO), stated that the new US tax policy will increase costs, compelling businesses to find solutions to maintain production and further optimise processes to balance out the potential tax increases. Despite the challenges, it can be viewed as an opportunity for companies to restructure production processes to enhance cost efficiency, particularly concerning input costs. "Businesses hope the government and relevant ministries will support, especially through preferential policies and reforms in administrative procedures, tax, and customs, to help companies expedite tax refunds and streamline customs procedures, allowing them to save costs and increase production efficiency," Xuan noted.

According to Chairman of the Vietnam National Garment and Textile Group (Vinatex) Le Tien Truong, although the 46% rate is significantly higher than previous estimates, when comparing the new reciprocal tariff with the current textile import one, the increase is still lower than that of China and not much higher than other competitive countries. In the short term, the tariff increase may reduce demand in the US market. Companies within Vinatex and the textile industry in general need to remain calm and wisely implement sustainable solutions, such as enhancing management practices, improving production efficiency through smart governance, and increasing labour productivity. They should also be ready to negotiate with customers to share difficulties and stabilise production forces. Truong emphasised that US President Trump's tax policy is flexible and negotiable, hence exporters hope that the government can negotiate with the US to reduce the tariff that the US plans to impose on Vietnamese goods. "In the current context, textile businesses need to remain calm, as not only Vietnam but all textile-producing countries are facing the US tariffs. The textile sector can increase the use of US cotton to improve the trade balance while meeting origin requirements,” Truong said.

Diversifying markets

In 2025, the Ministry of Industry and Trade (MoIT) aims for an export growth of about 12%, equal to approximately 450 billion USD. This goal is set in the context of a recovering global economy and Vietnam leveraging its signed FTAs. In March 2025 alone, Vietnam’s exports reached 38.5 billion USD, a 23.8% increase from the previous month and a 14.5% rise compared to the same month in 2024. This marked the highest turnover since the start of the year. Cumulatively, the country’s export turnover in the first quarter hit 102.8 billion USD, reflecting a 10.6% rise year-on-year. Tạ Hoang Linh, Director of the Department of Foreign Market Development under the ministry, said that to achieve high export growth this year, ministries and sectors will closely coordinate with the Vietnamese business community and foreign enterprises investing in Vietnam to effectively implement proposed solutions. The MoIT is making significant efforts for Vietnamese products to enter new markets. The ministry will continue to promote negotiations for FTAs with new markets in the Middle East, Latin America, Central Asia, and other emerging markets. Additionally, it will enhance trade promotion efforts and improve logistics infrastructure to reduce transportation costs and enhance the competitiveness of Vietnamese goods, aiming to expand the network of Vietnamese trade offices abroad to better support businesses in trade connections and export promotion. According to Deputy Director of the MoIT’s Trade Promotion Agency Le Hoang Tai, proactively exploring new emerging markets, niche markets, or alternative markets is essential. This approach not only aims to diversify markets but also strengthens the sustainability of export turnover, reducing reliance on a few key markets. Regarding the high US tariff, CEO of May 10 Corporation Nguyen Thi Phuong Thao said that as a significant portion of the corporation’s products is exported to the US, before the new US tariffs were announced, May 10 Corporation had proactively diversified its markets and its supply sources to lessen reliance on China.

Moreover, it has implemented cost-saving measures across all operations, from energy to water, and increased investment in technology to boost labour productivity and efficiency, ensuring competitive pricing. Thao added that her company is also enhancing domestic market development to balance export and domestic sales, closely monitoring the origins of raw materials and government policies from both Vietnam and the US to formulate appropriate production and business strategies. Meanwhile, Pham Dinh Ngai, CEO of Tra Vinh Farm LLC, indicated that while exports account for a significant portion of revenue, the domestic market also holds great potential. Currently, the internal capacity of Vietnamese companies is improving, and the domestic market is full of potential, so businesses will continue to maintain and enhance development, Ngai said./.