HANOI - Vietnamese exporters are proactively diversifying their markets to mitigate risks, particularly as they brace for potential significant tax hikes globally. This proactive approach stems from concerns over increasing trade protectionism and the potential impact of higher tariffs.
Nguyễn Phi Long, Chairman of the members' council at Saigon Industry Corporation (CNS), acknowledged the growing threat of trade defense investigations. CNS, a major exporter of high-quality plastic products and molds primarily to Europe and the US, is actively planning for a scenario where higher tariffs are imposed.
"Trade defense investigations have become a serious concern," Long stated.
In 2024, the US initiated 11 trade defense cases against Vietnamese exports, accounting for nearly a third of the 32 cases launched across 12 other markets. These investigations targeted various products, including solar panels, shrimp, steel, and paper products. Concerns over cross-border subsidies further complicate the trade landscape for Vietnamese businesses.
To counter these challenges, Vietnamese exporters are focusing on enhancing product quality and diversifying their export markets.
According to a Ministry of Industry and Trade report, Vietnam has established trade relations with over 200 countries and territories. In 2024, the US remained the largest export market for Vietnam, with an export turnover of $119.6 billion, followed by China, the EU, South Korea, and Japan.
"To increase exports to the US, domestic businesses should collaborate with local importers and distributors to select products of clear origin," advised Đỗ Ngọc Hưng, Vietnam's trade counsellor in the US. He also encouraged exporters to import raw materials from the US to help balance trade and emphasized the importance of understanding and complying with trade defense regulations to minimize risks.
Kao Siêu Lực, General Director of ABC Bakery, highlighted the importance of developing market share for premium products. ABC Bakery's export orders surged by 40% in 2024 compared to the previous year, primarily driven by increased exports to Japan. The company has secured orders extending to June 2025, with 60 containers shipped to Japan monthly. While exporting to nearby markets has reduced logistics risks, businesses must adapt their production and materials to meet the demands of new market segments to remain competitive.
Economists emphasized the need for businesses to adapt to evolving trade flows by continuously improving product quality, optimizing costs through technological advancements, and embracing automation and artificial intelligence. Furthermore, they stressed the importance of accelerating digital transformation and green initiatives to meet global sustainability standards.
Additionally, researching and utilizing new raw materials to reduce import dependence and lower production costs is crucial. Strengthening direct and indirect export channels while securing positions in global supply chains will be vital for mitigating risks in increasingly stringent markets.
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