Vietnamese enterprises proactively respond to new policies from export markets.

Competitive pressure with domestically produced goods

Geopolitical tensions show no signs of abating and continue to impact the global supply chain. Especially since US President Donald Trump took office for a second term, they have had a profound impact on the world economy.

Notably, the US has just imposed a 10% tax on Chinese exports. While China is Vietnam’s leading important trading partner, second largest export market and largest source of goods, especially raw materials for production. Many experts believe that every move of China’s economy and related policies has an impact on Vietnam’s trade activities.

Vietnamese enterprises proactively respond to new policies from export markets

Mr. Nong Duc Lai - Commercial Counselor, Head of the Vietnam Trade Office in China said that the US move will affect exports, reduce investment and domestic consumption in China, thereby leading to a decrease in GDP growth of 0.3 - 0.4 percentage points, and at the same time may reduce China's inflation by 0.2 percentage points.

On the positive side, according to Mr. Lai, Chinese and international businesses have sought to diversify production to avoid tariffs from the US, leading to expanded investment in countries like Vietnam. This indirectly promotes Vietnam as an attractive destination thanks to its competitive labor costs and favorable geographical location.

“Attracting foreign investment opens up opportunities for Vietnam to become a supporting production center, creating opportunities for businesses to participate in the production and supply chain, especially in the fields of agriculture and light industry. Vietnam also has the opportunity to penetrate deeper into the Chinese market when this country limits imports from the US and stimulates domestic consumption,” Mr. Lai said.

However, Mr. Lai also expressed concern that Chinese goods are restricted from being exported to the US market, forcing Chinese businesses to seek to export to other markets, including Vietnam, putting pressure on Vietnamese domestically produced goods. At the same time, Vietnamese goods will have to compete with Chinese goods in this market due to surplus due to export restrictions. In addition, due to the impacts of US trade policies, China will continue to devalue the NDT against the USD to promote exports, thus, the pressure on Chinese goods on Vietnam will be even greater.

"In addition to floating the yuan to promote exports, China can use methods such as transit trade, shifting the assembly of goods abroad through investment to export goods to the US market and countries with high taxes. This poses risks to the countries that China is aiming to invest in when the US government takes strong measures to trace the origin of Chinese goods," Mr. Lai said, warning that when shifting and increasing exports to markets outside the US and EU, Chinese enterprises will lower product standards according to the needs of the target market and compete for orders with many countries, including Vietnam, which will impact Vietnamese enterprises in the medium term.

Need to accurately forecast market trends to respond flexibly

Pointing out additional disadvantages to Vietnamese trade, Mr. Do Ngoc Hung, Head of the Vietnam Trade Office in the US, said that the biggest difficulty at present is that Vietnam is not considered a full market economy, leading to disadvantages in anti-dumping and anti-subsidy investigations by the US.

Faced with this reality, Mr. Hung recommended urgently developing a specific roadmap for Vietnam to protect its trade interests against potential tariff measures from the Donald Trump administration, while strengthening strategic cooperation with the US to ensure sustainable development in bilateral relations between the two countries.

Vietnam becomes an attractive destination thanks to competitive labor costs and favorable geographical location.

In 2025, many forecasts of challenges for global trade activities. Trade defense measures will increase, major economies will adjust policies to protect domestic production. Deputy Minister of Industry and Trade - Ms. Phan Thi Thang noted that grasping the situation, accurately forecasting market trends, building flexible response solutions and improving competitiveness are urgent requirements for businesses to adapt to global fluctuations.

“Vietnamese Trade Offices abroad need to strengthen monitoring, analysis and evaluation of trade policies of host countries, promptly advise on appropriate policy responses, ensuring Vietnam's interests in international economic integration. At the same time, continue to conduct in-depth research on market needs, tastes and requirements, thereby advising the Ministry of Industry and Trade on export market development strategies, and making recommendations for domestic production and business orientations,” Deputy Minister Phan Thi Thang directed.

The Deputy Minister of Industry and Trade also noted that Trade Offices need to proactively coordinate with local agencies regarding arising issues, such as lawsuits or fraud cases, to protect the legitimate rights of Vietnamese enterprises.

Minister of Industry and Trade Nguyen Hong Dien affirmed that Vietnam always considers the US as a leading important partner, and the economic relationship between Vietnam and the US is complementary in nature and competitive advantages. In the coming time, Vietnam will continue to consistently implement the Party and State's policies on rapid and sustainable development based on science and technology, innovation and digital transformation; reform and improve the quality of market economic institutions; improve the investment and business environment, enhance national competitiveness; build a self-reliant Vietnamese economy on the basis of mastering technology, actively integrating and diversifying markets.