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Vietnam adapts to new U.S. tariff | Vietnam Today
Vietnam adapts to new U.S. tariff | Vietnam Today
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And our next story looks at the latest
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changes to US tariffs. The United States
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has officially imposed additional
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tariffs on 60 trading partners effective
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on July 24th. And under the new
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measures, Vietnamese exports to the US
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face a a 12.5% tariff of 2.5 percentage
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points from the temporary rate.
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>> And while the immediate impact is
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expected to be limited, it is
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accelerating efforts by businesses to
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diversify markets, strengthen
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competitiveness, and move up the value
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chain.
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>> Under the new measure, key Vietnamese
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exports such as textiles and garments,
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footwear, wood products, and seafood
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face the additional 12.5% tariff.
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Shirts are the company's biggest export
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to the US. While the US accounts for the
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largest share of its exports, the
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additional 12.5% tariff is not an
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immediate concern as the company has
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already secured orders in the end of
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this year.
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>> Vietnam's tariff rate is about 2.5%
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points higher than key competitors such
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as Bangladesh, Cambodia, Indonesia, and
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Malaysia. In the long term, this may
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create a disadvantage. We are expanding
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into markets such as Australia, Canada,
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and South America to reduce reliance on
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the US market.
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>> Alongside textiles and garments, wood
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products and footwear are among the
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sectors expected to feel the greatest
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impact. According to Mirae Asset, the US
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accounts for roughly half of exports in
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these industries. Even so, many
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businesses say the new tariff remains
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manageable for now.
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>> Vietnamese firms have spent years
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building a strong presence in the US
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market, where consumers are now familiar
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with Vietnam-made furniture. Companies
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have been diversifying into new markets
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while strengthening governance, trade
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defense capabilities, regulatory
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compliance, legal timber sourcing, and
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product traceability.
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>> The outlook for foreign direct
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investment also remains positive.
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Experts say the new tariffs are unlikely
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to significantly affect high-value
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investment projects.
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>> Vietnam's remains highly attractive for
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high-tech projects, data centers, R&D
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facilities, and electronics
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manufacturing. Thanks to policy reforms,
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improving logistics, a growing
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innovation ecosystem, and deeper
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integration into global supply chains,
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the shift towards eco-industrial parks,
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high-tech zones, and digital
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infrastructure is also a major
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advantage.
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>> Earlier this month, the government
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issued decree 202 banning imports
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produced wholly or partly with forced
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labor as part of broader efforts to
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address trade concerns and strengthen
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compliance standards. While the 12.5%
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tariff adds pressure on Vietnam's
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low-cost manufacturing model, experts
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believe it could also accelerate the
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country's transition toward higher-value
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production, more transparent supply
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chains, and higher-quality investment.
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>> [snorts]