Proactive Directions for Vietnam Amid Global Trade Turbulence

Less than half a day after the retaliatory tariffs initiated by U.S. President Donald Trump officially came into effect for 180 trade partners—including Vietnam—he unexpectedly announced a 90-day suspension. This move offers a “valuable pause” amid global trade tensions, creating a short-term opportunity for countries—especially developing economies like Vietnam.

This suspension is not only a tactical move in the context of U.S. domestic politics but also serves as a test for countries to reshape supply chain structures, enhance internal capacities, and expand non-U.S. markets. For Vietnam, the next 90 days are not only a “golden time” to seize export opportunities but also a test of policy responsiveness, bilateral negotiation capabilities, and positioning in the international trade landscape.
 
Vietnam is expected to proactively build flexible response scenarios to strengthen production capacity, manage supply chain risks, and promote export market diversification strategies:

1. Increasing Imports from the U.S. – A Sign of Political Goodwill
Vietnam is expected to increase imports of certain strategic goods from the U.S. to demonstrate goodwill in bilateral trade relations:

• Proceeding with the purchase of 50 Boeing aircraft worth over USD 10 billion between Vietnamese airlines and U.S. partners, based on previously signed MOUs.
• Increasing imports of agricultural products such as soybeans, corn, pork, and wheat — according to the General Department of Customs, import value from the U.S. rose 18% in Q1/2024.
• Boosting LNG (liquefied natural gas) imports from the U.S. to secure energy supply.

However, given Vietnam’s relatively modest GDP per capita, this is only a short-term, reactive solution that may not sustain a long-term trade balance.

2. Tax Incentives for U.S. Goods
The Vietnamese government is considering reducing or exempting import tariffs on certain U.S. goods to support bilateral trade flow:

• Energy, liquefied gas, and electrical equipment — to aid energy transition.
• High-tech machinery, medical devices, and semiconductors — to serve manufacturing and healthcare industries.
• Functional foods and imported pharmaceuticals — to stabilize prices and diversify supply sources.

These measures aim to create a more favorable trade environment with the U.S. amid ongoing tariff pressure.

3. Strengthening Origin Control (C/O) – Compliance to Sustain Export Markets
In the long term, Vietnam is expected to tighten control over the origin of goods to prevent trade fraud and third-country transshipment. Enhancing standards and transparency in origin labeling is not only a requirement from the U.S. but also a condition for Vietnamese goods to remain competitive in major markets.

Particularly for key export sectors like wood (with over USD 10.8 billion in exports to the U.S. in 2023), seafood, textiles, and electronics, Vietnam is tightening C/O issuance and control processes, promoting traceability to minimize risks of trade defense investigations or tariff impositions.

4. Developing Raw Material Industries – Attracting Investment, Reducing Import Dependence
Facing pressure to restructure supply chains, Vietnam is actively attracting investment into supporting industries to reduce import dependency and increase production autonomy. This is a significant opportunity for both domestic and international investors, with various incentive policies expected soon.

• Development of yarn, fabric, and dyes for the textile industry, which exports over USD 18 billion to the U.S.
• Encouraging investment in microchips and components to meet demand from factories in provinces like Bac Giang and Bac Ninh.
• Supporting industries: Localities such as Long An, Quang Nam, and Hai Phong... are being zoned for industrial clusters to welcome a new wave of investment.

In the context of volatile trade policies, Vantage Logistics stands alongside businesses with:

• Consulting on sourcing from Southeast Asia to diversify supply chains.
• Comprehensive logistics services: international transport – customs declaration – C/O control.
• Support in optimizing export-import processes to comply with new U.S. regulations and relevant FTAs.

Contact us now for solutions tailored to your business’s new trade strategy.