Textiles struggle to cope with Trump's tax storm

Market expansion, product diversification, digital transformation, green transformation... are strategic pillars for the textile and garment industry to cope with the 46% reciprocal tax storm from the US.

A modern robotic arm capable of lifting and lowering cardboard boxes with a load capacity of up to 30kg was introduced at the exhibition - Photo: NHAT XUAN

Sharing on the sidelines of the International Exhibition on Textile, Garment, Equipment, Raw Materials and Fabrics (SaigonTex - SaigonFabric) 2025, Mr. Vu Duc Giang - Chairman of the Vietnam Textile and Apparel Association (VITAS) - said that the US market currently accounts for about 40% of Vietnam's textile and garment export turnover.

The news that the US is imposing a reciprocal tax of up to 46% on Vietnamese goods has surprised many businesses. To respond, Mr. Giang recommends that businesses focus on long-term strategic orientations including: diversifying export markets, customers and product types to reduce dependence on the US.

According to Mr. Giang, the requirements for green transformation and digital transformation are also putting increasing pressure on the entire industry.

To meet increasingly stringent standards from free trade agreements (FTAs) as well as requirements from global brands, businesses are forced to invest heavily in environmentally friendly production technology, modern equipment and developing high-quality human resources.

SaigonTex - SaigonFabric 2025 Exhibition is therefore not only a product display event, but also a strategic forum for businesses to seek new solutions, shaping the future of the industry. The event brings together more than 1,100 exhibitors from 25 countries and territories, displaying advanced, leading equipment, raw materials and technologies.

According to the organizers, the highlight of this year's exhibition is the presence of automation solutions, digitalization and energy-saving technology. Leading enterprises in the industry will introduce to visitors the latest and most modern textile and garment machinery, dyeing and chemical technology, fabrics and garment accessories.

3D design technology also allows for visual product simulation, shortening sample development time and reducing material waste - Photo: NHAT XUAN

From a business perspective, Mr. Cao Huu Hieu - General Director of Vietnam Textile and Garment Group (Vinatex) - commented that dual transformation (greening and digitalization) is an irreversible trend.

According to him, to maintain orders and meet export standards, businesses need to invest in energy-saving production systems and use recycled materials, exploiting renewable energy, and applying technology to improve productivity and product quality.

Meanwhile, Mr. Tran Ngoc Liem - Director of the Vietnam Federation of Commerce and Industry (VCCI) Ho Chi Minh City branch - said that the textile and garment industry is still facing a series of challenges: labor shortage, unstable orders, increasingly strict regulations on origin and the breakdown of some links in the supply chain.

The textile exhibition brings together 1,100 exhibitors from 25 countries and territories - Photo: NHAT XUAN

In the context of the increasingly clear "tax storm" from the tough policy of the US President Donald Trump's administration, SaigonTex - SaigonFabric 2025 plays an increasingly strategic role as a fulcrum, helping businesses update technology, strengthen supply chains and establish a development direction suitable for the volatile global context.

According to the organizers, in addition to the exhibition, the event also has trade connection programs and specialized seminars providing updated information and new trends for visitors. The exhibition is co-organized by the Vietnam Federation of Commerce and Industry, the Vietnam Textile and Apparel Association (VITAS) and other partners.

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