Việt Nam seeks to diversify markets to reduce export risks

Việt Nam seeks to diversify markets to reduce export risks

Experts see US President Donald Trump's recent tariff hikes on Canada, Mexico, and China as the start of his administration's trade policies, with potential for broader tariffs.

Cargo containers are loaded at Gemalink International Port in Bà Rịa-Vũng Tàu Province. — VNA/VNS Photo Hồng Đạt

Việt Nam’s industries and businesses are advised to improve market diversification in 2025, given that unpredictable fluctuations and escalating trade tensions may negatively impact the country’s export activities.

According to experts, US President Donald Trump’s recent order imposing tariffs on exports from Canada and Mexico, as well as increasing tariffs on products from China, is seen as the start of his administration's tariff policies. This also raises the possibility of the US imposing tariffs on imports from other countries.

Phạm Văn Việt, Chairman of the Board of Directors of Việt Thắng Jean Co Ltd (VitaJean), said that the company has been actively addressed predicted market difficulties. In addition, it has been making the most of opportunities to diversify its raw material sources by increasing the localisation rate, importing materials from new markets such as Pakistan, and rebuilding its supply chain.

This year, the textile and garment industry targets approximately 13 per cent growth compared to 2024, reaching a revenue of US$47-48 billion. However, VitaJean and many other businesses are confident in setting a maximum growth target of up to 15 per cent, stated Viet.

Bibica Corporation, a leading candy producer, plans to expand into the Republic of Korea, Japan and China through the Walmart hypermarket chain due to its diverse product range, including fresh cakes, layer cakes, gummies, hard candies and mooncakes.

Although the domestic market remains the company's main source of revenue, it plans to increase the export revenue to 20 per cent over the next three years to mitigate risks.

Diệp Thành Kiệt, Vice Chairman of the Việt Nam Leather, Footwear and Handbag Association (Lefaso), suggested small- and medium-sized enterprises choose markets with lower risks and more stability, such as the EU, Japan or even the ASEAN market. This, however, depends on the specific capabilities and circumstances of each business, as not every company is able to diversify its export markets.

To maintain the country’s export position, experts suggested that, in addition to expanding export markets, businesses should fully utilise the 17 free trade agreements (FTAs) that Việt Nam has signed with partners. This will help enhance export value and reduce dependence on some countries.

This approach can also mitigate losses when trade policies change. Furthermore, authorities should find solutions to increase imports from the US, particularly machinery, equipment and advanced technology, thereby improving the domestic production capacity, boost labour productivity, and create sustainable growth in the future.

According to Nguyễn Anh Sơn, Director of the Ministry of Industry and Trade’s Agency of Foreign Trade, although exports still face volatile global conditions in 2025, the ministry will continue working to facilitate businesses and perfect legal documents in a way that assists them in participating in export-import activities, diversifying export markets and promoting economic growth.

Minister of Industry and Trade Nguyễn Hồng Diên emphasised that the ministry plans to implement concerted and effective solutions to leverage competitive advantages and maximise export market opportunities.

This will involve promoting and supporting businesses and industry associations to effectively tap into traditional markets that still hold great potential; and researching, negotiating and establishing partnerships with new ones.

Additionally, it will strive to capitalise on the opportunities from the existing FTAs, and enhance the role of Việt Nam’s trade offices abroad in gathering information and promptly reflecting global economic developments and policies of host countries. This will help state agencies respond quickly and effectively, ensuring the highest national interests. The ministry will also provide warnings and recommendations for businesses and industry associations on appropriate solutions, while promoting targeted trade promotion activities.

Attention will be paid to diversifying promotional activities, enhancing early risk detection, and supporting businesses during trade defence lawsuits, added Diên.

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