Industry leaders view this reprieve not only as a buffer against economic shocks, but also as a crucial moment to restructure production and increase resilience in the face of global market volatility.

Many experts believe that the United States will continue to be a major market for Vietnam, with significant untapped potential.

According to the Vietnam Timber and Forest Products Association, Vietnam’s wood exports to the U.S. totaled US$8.8 billion in 2024, representing over 50 percent of the sector’s total export revenue. 

Notably, foreign-invested enterprises contributed nearly 70 percent of this figure. 

As such, businesses remain cautious, recognizing that any withdrawal of foreign-invested firms from Vietnam would have wide-reaching impacts across the industry.

It is essential to secure the U.S. market, the association noted.

Tran Van Hiep, vice-president of the Vietnam Cashew Association, told Tuoi Tre (Youth) newspaper on Sunday that despite a recent decline in export value, the U.S. remains a key market for Vietnamese cashews.

Vietnam exported nearly $1.1 billion worth of cashews to the U.S. in 2024, accounting for over 21 percent of total cashew exports.

“Among the 60 buyers of Vietnamese cashews, the U.S. remains vital. Despite tax-related challenges, its market size and diverse demands make it indispensable,” he said.

Ceramics, another traditional industry, is also heavily reliant on the American market. 

Vuong Sieu Tin, vice-president of the Binh Duong Ceramics Association, stated that about 70 percent of the southern province’s ceramic export revenue comes from the U.S..

He said the U.S. has increased import tariffs on Vietnamese ceramics from six percent to 16 percent, but the rates remain acceptable for firms.

“The U.S. is not just a major market for Vietnamese ceramics, but a key global player. The industry faces little competition and fewer investigations, which gives it confidence in negotiating favorable rates,” he stressed.

Meanwhile, Vietnam’s fruit and vegetable exporters reported that exports to the U.S. account for 9-10 percent of the industry's total turnover, making it the second-largest market after China.

However, concern is growing over potential tariff hikes on Vietnamese produce, especially given that competitors like Thailand, Malaysia, and India enjoy significantly lower rates.

Nguyen Thanh Binh, head of the Vietnam Fruit and Vegetable Association, said that fruit and veggie shipments to the U.S. surged over 60 percent in the first month of 2025 compared to the same period last year. 

Realizing the vast potential of this market, the association has been actively collecting input from businesses to formulate policy recommendations.

“In addition to market diversification, we are asking for support from the government with tax incentives, interest rate adjustments, and extended loan terms to help firms weather potential disruptions," Binh elaborated.

Several fruit & veggie and cashew exporters are also accelerating shipments during the 90-day halt period to avoid overstocking and minimize exposure to potential tariff hikes. 

One cashew company reported a 30-percent increase in exports to the U.S. since early April and expects this momentum to continue through mid-July.

Strategic adaptation, market expansion

Hiep emphasized the need to both expand into new markets like Australia, Japan, and Europe and to develop tailored products that meet specific consumer demands.

Only around 10 percent of Vietnamese cashew exports are currently deeply processed so firms are investing in new machinery to increase that share, which adds value and boosts competitiveness, he said.

Wood companies are actively sourcing more cost-effective raw materials, restructuring product lines to qualify for favorable tariff codes, and exploring growth in other markets such as India, South Korea, and the EU.

“Not all wood products are taxed equally in the U.S. For example, some categories of furniture may still qualify for preferential taxes,” said an expert.

 

Seeing tariff pressure as catalyst for change

Despite the challenges, industry leaders are framing the situation as an opportunity for introspection and improvement. 

These challenges are part of the game for exporters. It forces them to look inward, refine production, and become more efficient and competitive, Tin said.

He also pointed out that ongoing tariff tensions between the U.S. and China may indirectly benefit Vietnam. 

As U.S. buyers look to diversify away from Chinese suppliers, Vietnamese producers, especially those offering unique products with limited global competition such as ceramics, could attract more American importers.

Dragon fruit is one of the most exported fruits to the U.S..

Vietnam is among the countries facing steep retaliatory tariffs from the United States, with a 46-percent rate, among the highest announced by President Donald Trump in early April.

According to a White House statement released April 2, President Trump would impose a 10-percent tariff on all countries starting April 5, and higher reciprocal tariffs, effective April 9.

On April 10, the U.S. president announced a 90-day pause on reciprocal tariffs for more than 75 countries, including Vietnam, as part of his broader tariff plan.

At the same time, he raised the tariff rate on China to 125 percent, effective immediately.

Source: Tuoitre News