EXPORTERS SPEED UP DIVERSE STRATEGIES

Vietnamese manufacturing enterprises are capitalising on pivotal opportunities to chart methodical, long-term growth strategies across both traditional and emerging markets.

At the government’s regular monthly meeting on May 6, Minister of Finance Nguyen Van Thang acknowledged that the current US path towards retaliatory export tariffs caught most economies off guard and immediately impacted global investor and business sentiment.

“However, Vietnam has been far from passive. We responded proactively and early,” Minister Thang said, highlighting that Vietnam engaged in effective diplomatic outreach across all levels that helped secure Vietnam’s position among economies that were granted priority in upcoming tariff negotiations. The first round was set for May 7.

According to the National Statistics Office (NSO), April export turnover hit $37.45 billion, up 19.8 per cent on-year, contributing to a cumulative total of $140.34 billion for the first four months of 2025, up 13 per cent from the same period last year. Seafood exports reached $3.21 billion, accounting for 2.3 per cent of total export value.

Among Vietnam’s most responsive sectors is seafood. Exporters are moving swiftly to fulfil orders ahead of the July 9 tariff enforcement deadline from the US. Le Hang, deputy secretary general of the Vietnam Association of Seafood Exporters and Producers (VASEP), forecast a 10-15 per cent surge in exports to the US in May and June, thanks to last-minute deals and price adjustments.

Nguyen Ngo Vi Tam, CEO of basa fish exporter Vinh Hoan Corporation, confirmed robust second quarter exports. “We are neither overly optimistic nor pessimistic,” Tam told VIR. “We are committed to the US market, but we remain realistic. The real test will be how American consumers respond to price changes. Any tariff level will take time to reflect its full impact. Importers and consumers may eventually push back if costs rise significantly.”

Tam also noted that while the US remains a priority, the company is ensuring stable supply to other strategic markets. “We are not placing all our eggs in one basket. The strength of our operations lies in our flexibility,” she added.

In the textile sector, TNG Investment and Trading is showing similar agility. The company has secured US orders through August and EU contracts through October, with ongoing negotiations for additional year-end contracts. “We are working closely with long-term clients who understand the challenges. Trust and transparency are key during this phase,” a senior TNG executive said at the company’s AGM.

TNG is also transitioning to more complex, higher-value garments to offset the impact of lower volumes. “Our buyers are currently absorbing the 10 per cent tariff hike to maintain retail stability. But if rates increase further, pricing pressure will likely cascade down the supply chain,” the executive said. “We are staying grounded and proactive.”

The company is also strengthening footprints in free trade deals that link markets such as Canada, Mexico, the EU, and Russia to reduce its reliance on the US. As of April, US-bound orders accounted for only 26 per cent of TNG’s signed contracts, compared to 38 per cent in 2024.

At Song Hong Garment JSC, where the US accounts for 80 per cent of total export revenue, the mood is measured. “We’ve confirmed orders until August. No cancellations so far, but Q4 remains unclear. Many large global brands are still finalising their sourcing plans,” said chairman Bui Duc Thinh.

In response, the company is accelerating delivery timelines and shifting focus to premium brands with strong resilience. “Vietnam is gaining ground as an alternative sourcing destination, especially amid the transition away from China. But we’re also aware of the stiff competition from India and Bangladesh,” Thinh said.

Song Hong is also considering investments in domestic fabric production to reduce dependency on imported raw materials. “We are working with suppliers and importers to distribute risk. Even if contracts place the tax burden on importers, we believe shared sacrifice is essential for partnerships,” he added.

Seafood exporters, too, remain cautious despite strong April figures. VASEP reported that monthly exports reached $850 million, contributing to a four-month total of $3.3 billion, up 21 per cent on-year. However, the association warned of inconsistencies across product lines and markets, exacerbated by shifting US policies.

The Ministry of Agriculture and Environment projected that seafood exports could reach $10.5 billion in 2025, but only if businesses continue to adapt, diversify, and move up the value chain. “We’re seeing positive signals, but this year will test the resilience and creativity of our exporters,” VASEP noted.

Meanwhile, Vietnam’s trade balance remains favourable. April’s surplus reached $580 million, bringing the year-to-date figure to $3.79 billion. Domestic enterprises contributed $40.74 billion in exports (up 18.1 per cent), while foreign-invested firms delivered $99.6 billion (up 11 per cent) according to the NSO.

Source: VIR