With the risk of an escalating trade war and unpredictable tariff policies under U.S. President Donald Trump, exporters in Vietnam are anxiously racing to get prepared. Strategies range from diversifying supply chains to expanding into new markets, all aimed at mitigating potential impacts. Shifting supply sources to mitigate risk The U.S. is moving forward with plans to increase tariffs on Chinese imports, potentially raising them to a total of 35%. While major trading partners like Canada and Mexico have been granted a 30-day pause on the tariff threats, the risk remains if agreements are not reached. Aware of these uncertainties, exporters in Vietnam are taking proactive measures for protecting themselves. Viet Thang Jeans (VitaJean) has demonstrated agility in navigating these trade shifts, increasing U.S. exports from 30% to 45% of its total output by leveraging flexible manufacturing and strategic partnerships in Mexico. Anticipating potential U.S. tariffs on Mexican goods, the company is exploring options to shift orders back to Vietnam and secure alternative raw material sources to maintain its competitiveness. According to Pham Van Viet, general manager of VitaJean, sourcing materials from India, Indonesia, Thailand, or even domestically is a key strategy to counter market volatility. Currently, over a third […]
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