Vietnam's merchandise exports to the US totaled approximately 39 billion USD in the first three months of the year, a decline of over 4,3 billion USD, or nearly 10%, compared to the same period last year, according to data from the General Department of Vietnam Customs (Ministry of Finance).
The downturn affected many product categories, particularly consumer goods. Textiles experienced the most significant fall, decreasing by over 1,2 billion USD to just over 3,9 billion USD. Wood and wood products also saw a decline of nearly one billion USD, reaching approximately two billion USD. Plastic products and seafood exports also fell, to 928 million USD and 343 million USD, respectively.
Conversely, industrial and technology goods performed better. Exports of electronics and phones to the US, the world's largest economy, still reached nearly 12,4 billion USD, while machinery, equipment, and components stood at approximately 6,2 billion USD.
Despite some resilient sectors, overall data indicates a slow recovery in US demand, particularly for cyclical and discretionary consumer goods such as fashion and furniture. This slowdown coincides with escalating tensions in the Middle East since late February.
The Red Sea conflict has placed dual pressure on businesses, leading to surging logistics costs and weakened consumer purchasing power. Shipments from Asia destined for the US East Coast must now reroute around the Cape of Good Hope in South Africa, adding 10 to 15 days to transit times. This detour significantly increases costs and elevates the risk of missing critical seasonal deadlines.
For the textile industry, which operates on low profit margins, delayed deliveries often lead to lost orders. The wood industry faces even greater pressure, as transportation costs already represent a significant portion of its overall production expenses.
Pham Van Viet, Chairman of the Board of Directors at Viet Thang Jean Company, reported that raw material costs have climbed by 8% to 18%, with shipping freight adding an extra 4,000 to 5,000 USD per container. Given the subdued US purchasing power, his company is compelled to split orders, reduce reliance on air freight, and explore other markets to diversify risks.
Similarly, Nguyen Dinh Tung, CEO of Vina T&T Group, noted that since early March, many shipments to the US required adjustments or even temporary suspension following the outbreak of the Middle East conflict. Persistently high costs continue to disrupt the company's export operations. To offset this, Vina T&T is increasing shipments to Australia, Japan, and China.
Vietnam holds substantial market shares in the US for wood products (over 45%) and textiles (about 19%), making these sectors particularly vulnerable to market fluctuations. If Middle East tensions continue, businesses project that export pressures will likely persist into the second quarter, as logistics costs remain elevated and consumer purchasing power has yet to recover.
Thi Ha
