Vietnamese goods do not compete directly with US goods
At the Trade Promotion Conference with the Vietnam Abroad Trade System in February 2025, Mr. Do Ngoc Hung - Head of Vietnamese Trade in the US - informed that after four weeks of becoming the President of the United States, Mr. Donald Trump is still strongly promoting trade policies. This is to fulfill the promise in the election campaign, with impacts on taxes, investment and policy decisions affecting the global supply chain.
According to Mr. Do Ngoc Hung, Vietnamese goods do not compete directly with US goods. In January 2025, Vietnam's total export turnover to the US will reach about 10 billion USD, an increase of 4.6% over the same period in 2024. Meanwhile, imports from the US to Vietnam reached about 1.5 billion USD, down 6.6% over the same period last year.
These fluctuations reflect the increase in demand for Vietnamese goods in the US market. While imports from the US tend to decrease slightly" - Mr. Hung commented.
In response to the tax policies on imported goods from the US, Mr. Hung recommended that businesses need to monitor trade developments to make timely adjustments. Businesses need to carefully consider production and business plans because countries subject to tax can strengthen trade protection measures, causing greater competitive pressure on the Vietnamese market.
Opportunities and challenges for Vietnam
According to Mr. Nong Duc Lai - Vietnam Trade Counselor in China - China and the US are both major trading partners, the largest and most important export markets for goods of Vietnam. Therefore, US-China competition and trade policies between the two countries have both positive and negative impacts on trade in particular and the Vietnamese economy in general.
Analyzing the positive impact, Mr. Nong Duc Lai said that he will receive an investment wave from the shift in the supply chain. Chinese and international enterprises have sought to diversify production to avoid tariffs from the US, leading to expanding investment in countries such as Vietnam. This indirectly promotes Vietnam to become an attractive destination thanks to its competitive labor costs and favorable geographical location.
Being able to participate in the production chain, attracting foreign investment opens up opportunities for Vietnam to become an auxiliary production center. Create opportunities for businesses to participate in the production and supply chain, especially in the agricultural and light industrial sectors. At the same time, it increases exports to the US. However, this also puts Vietnam at risk of being investigated by the US for anti-dumping.
However, Mr. Lai also said that this is also an opportunity and motivation for Vietnam to promote three strategic breakthroughs (improving infrastructure, transparency of administrative procedures and improving the quality of human resources).
Meanwhile, the EU has started a new term for 2024 - 2029 with many important policy adjustments. Mr. Tran Ngoc Quan - Vietnam Trade Counselor in Belgium and the EU - informed that the European Green Agreement Program with many high requirements on environment and sustainable development has gradually shifted to programs that are considered a change in operating concepts.
The EU's general policy will be to enhance competitiveness, enhance security and enhance economic recovery.
Recommending Vietnamese enterprises in the face of EU policy changes, Mr. Tran Ngoc Quan said that EVFTA is an agreement that gives clear advantages to Vietnamese goods. Vietnamese enterprises need to promote trade promotion activities. Look for partners to take advantage of this advantage, dominate the market before many FTAs are concluded by the EU, which is expected to end negotiations this year and next year.
In addition, associations need to require businesses to improve their sense of responsibility in business operations. Guiding enterprises in production and export according to regulations, strengthening food quality and safety management.
