Tariffs are a concern for many export businesses, especially in a volatile global economy. Do Tri Tuan, deputy general director of Dai Dung, described losing sleep over the initial news of retaliatory tariffs from the US.
"We researched all kinds of documents to understand the HS tariff codes and their application," Tuan said at the "Sharpening Strategic Spearheads for International Reach" dialogue, part of the Vietnam Private Sector Economic Forum 2025, on the afternoon of 15/9.
Dai Dung, established over 30 years ago, specializes in steel structure manufacturing and construction. Exports account for over half of its business, with markets including Japan, Australia, and the US.
To cope with the US tariff fluctuations, Tuan explained that the company maximized the use of Vietnamese materials and reduced reliance on Chinese sources. He reported that their US market revenue has nearly doubled and is projected to grow by tens of percent next year.
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Do Tri Tuan, deputy general director of Dai Dung, at the event. Photo: VYEA |
Do Tri Tuan, deputy general director of Dai Dung, at the event. Photo: VYEA
Beyond strengthening internal resources, the tariff fluctuations also provided an opportunity for Vietnamese businesses like Nafoods to restructure their export market allocation.
According to Nguyen Manh Hung, chairman of Nafoods, the tariffs significantly impacted B2B exports (wholesale), making B2C (direct-to-consumer) channels or supermarket systems more suitable alternatives. They have since reduced their US market share from 32% to 20%. "Tariffs are also a chance for Vietnamese businesses to adapt and respond," Hung said.
Restructuring input material sourcing to reduce dependence on third countries is another strategy adopted by exporters. Dr. Le Duy Binh, director of Economica Vietnam, cited the example of the telephone and components industry, where 89% of input component value is imported. The textile industry only achieves a 45-50% localization rate, meaning over half of the materials, especially fabrics and yarns, are imported mainly from China, South Korea, and other countries.
According to Mai Huu Tin, general director of U&I Group, Vietnamese businesses need to participate in the raw material supply "game" to increase the domestic content of Vietnamese goods. "To enter a level playing field, Vietnamese businesses must be self-sufficient in production, improve quality, and reduce imports from China," Tin said.
Meanwhile, the director of Economica Vietnam highlighted the imbalance in the export structure. From 2018 to 2024, the foreign direct investment (FDI) sector consistently accounted for over 70% of Vietnam's total export value. In 2024 alone, the export value of this sector (including crude oil) was estimated at over 290 billion USD, accounting for 71.7% of the country's total export value.
"The dominance of the FDI sector helps maintain growth rates and trade surpluses, but it also poses challenges to sustainability, technology transfer, and the participation of Vietnamese businesses in global value chains," Dr. Binh said.
Sharing this view, Pham Quang Vinh, Vietnam's ambassador to the US from 2014 to 2018, recommended that authorities review the approach to creating ecosystems within the FDI sector and ensure equality between this sector and Vietnamese businesses.
He suggested that the state should invest in policy, such as incentives for "national businesses," to develop key economic sectors. Ambassador Vinh advised national businesses to not only focus on large corporations but also consider those with the potential to become major players in Vietnam's strong sectors like wood, furniture, agriculture, stationery, or steel.
Thuy Truong
