Ready for the 'headwind'

The US government has just announced an import tax of up to 46% on goods originating from Vietnam. This sudden decision not only caused financial market fluctuations but also raised a series of concerns for Vietnam's export activities.

A textile and garment company specializing in exporting goods to the US market has just shared that the imposition of high taxes will immediately impact key industries such as textiles, wood products, footwear, electronics, seafood, etc. and from there spread to the entire economy. Hai Duong enterprises are no exception to this impact. His company's garment orders are also affected.

However, he is optimistic that there are ways to survive this difficult period. He said that the Covid-19 pandemic is considered an effective "vaccine" that helps his business calmly respond to all situations such as the current US tax imposition. Thanks to proactively diversifying the market from before, when facing difficulties, he is looking for ways to expand export market share to the EU, Australia...

Obviously, it is not until now that businesses are thinking about diversifying export markets. The Covid-19 pandemic and the post-pandemic economic crisis have made businesses in the province realize the need to be self-reliant, proactively find ways to overcome "headwinds", and not depend on a single export market.

Hai Duong enterprises, which have proactively restructured their supply chains and diversified their markets, are now facing difficulties from US tariff policies and may target other markets such as Europe, Northeast Asia, and emerging markets in the Middle East and Africa.

Hai Duong is increasingly integrating deeply into the international economy, but that does not mean it depends only on a large market, the United States. The evidence is that the value of Hai Duong's exports in the first quarter of 2025 is estimated at 2 billion 359 million USD, an increase of 7.3% over the same period in 2024. Some items with high export value such as electric wires and cables are mainly exported to Korea, Japan, and the European Union (EU) rather than the United States. Hai Duong businesses can fully take advantage of trade agreements such as CPTPP, EVFTA, and RCEP to open up new avenues for their goods.

Diversifying the market and reducing dependence on one partner helps businesses proactively build their own product brands and increase the value added content of exported products. When facing difficulties like this time, it will probably be effective.

Proactively supporting businesses to overcome difficulties at this time is not only a responsibility but also a condition to maintain development momentum. The meeting between Prime Minister Pham Minh Chinh and ministries and branches on the US reciprocal tax on the morning of April 3 is attracting the attention of many businesses, who are looking forward to a flexible and effective management policy from the Government.

It can be seen that in a volatile and vulnerable world, nothing is certain except one's own capacity. No market favors us forever. The important thing is that Hai Duong enterprises know how to adapt and rise up from the events considered "headwinds" such as the recently issued US tax policy. "Headwinds" can sometimes be a boost to break through.