Vietnamese businesses selling to the US seek ways to adapt to tax fluctuations

On September 25, US President Donald Trump announced that the US will impose a 100% tax on imported branded pharmaceuticals, 25% on heavy trucks, 50% on kitchen cabinets and 30% on some types of furniture.

Wood and textile industries still have prospects despite tariff pressure - Photo: QUANG DINH

Receiving information about the new US tax policy, a representative of the Handicraft and Wood Processing Association of Ho Chi Minh City (Hawa) said that businesses are quite calm. Not only the wood industry but also the textile industry has had solutions to cope.

Wood industry still finds way to finish

In the first eight months of the year, Vietnam's wood and wood product exports reached 11.1 billion USD, up 6.3% over the same period in 2024.

According to Hawa representative, from now until the end of the year, there are three months left, the wood and furniture industry is expected to export about 5 billion USD, of which goods to the US market alone account for about 2.5 billion USD.

According to estimates, the value of kitchen cabinets and some types of furniture accounts for about 30%, or about 800 million USD. This is the group of products that will be subject to new taxes from October 1st.

"If businesses move quickly to avoid taxes, it's still okay, but there are also businesses that delay to wait and see because if taxes increase, the affected turnover will be around 300 - 400 million USD," said a Hawa representative.

Vietnam’s wood processing industry has about 6,000 enterprises, with 45% having the ability to export. In the past, even before the US market fluctuated, Hawa repeatedly called on enterprises to return to the domestic market, invest in product distribution to master production.

In the textile industry, Mr. Pham Van Viet - Vice President of the Ho Chi Minh City Textile and Fashion Association - said that the growth rate in the US market has slowed down, from 9% to 4% in July 2025.

In the first seven months of 2025, the textile and garment industry achieved a turnover of 26.3 billion USD, an increase of about 9% over the same period, towards the target of 50 billion USD for the whole year.

Mr. Viet commented that this year's industry-wide growth "will hardly reach the expected 13.2%" due to policy fluctuations and market demand.

However, looking at the long-term development potential, Mr. Viet also said that this is an opportunity for businesses to proactively diversify their markets. "Vietnam has signed 17 free trade agreements with many countries and regions.

The textile and garment industry still has great room for development if businesses know how to exploit new markets, reduce dependence on certain regions and expand their strategic vision in exports," said Mr. Viet.

Mr. Do Ngoc Hung - Vietnam Trade Counselor in the US, citing information from large distribution chains such as Walmart and Costco, said that imported products from Vietnam are still focused on and highly appreciated by these chains.

However, these corporations also expressed concerns that high taxes could affect business operations.

Mr. Hung said many purchasing delegations from the US are still interested in Vietnamese products, especially in the wood, furniture, textile, footwear, and seafood industries.

However, to penetrate deeper into distribution chains, Vietnamese enterprises need to meet standards on green and sustainable production, production capacity for large orders and ensure stable supply.

Businesses pivot to the market

Mr. John Hieu - Director of TLD Vietnam Joint Stock Company - said that the US market is still an undeniably important partner, although it still exports to many other markets such as Europe, Australia...

American buyers are still paying great attention to supply sources in Vietnam. This person said that even if tariffs increase, buyers are expected to gradually get used to it.

"Although buyers may also have moves to squeeze suppliers' prices, this process will be a cost sharing process among parties in the supply chain such as suppliers, buyers, material suppliers...", said a TLD representative.

Faced with fluctuations in tax policy, many businesses have proactively sought to shift export markets.

Ms. Nguyen Thi Thanh Huong - Sales Manager of Viet Thang Jeans Co., Ltd. - shared that since the US announced a 46% reciprocal tax rate, the company has shifted more than 10% of its export output from the US to other markets such as ASEAN, Canada, Australia and increased domestic distribution.

"Currently, the US still accounts for 23% of our total export orders. Shifting to another market in a short time is not easy, but it is an urgent direction in the current context," Ms. Huong said.

According to Ms. Huong, the company's export orders to the US were completed before June. From the second half of the year, the company focused on increasing domestic competitiveness while promoting the exploitation of niche markets.

"The domestic market has a lot of potential. To compete effectively, businesses need to focus on three factors: consumer culture, e-commerce and high quality standards," she emphasized.

Sharing the same view, Mr. Nguyen Xuan Linh - Operations Director of SCAVI Group - said that the domestic fashion market in Vietnam is worth about 12 billion USD with a growth rate of over 10% per year.

However, domestic enterprises have not fully exploited this market, and a large part of fashion products are being imported, mainly from China.

At the same time, in addition to connection activities to diversify export markets and find ways to completely shift the market, mastering the domestic supply chain of raw materials and accessories, increasing product value to compete directly with other export markets is the direction that this enterprise is aiming for.

"Mastering the supply chain is the key factor for businesses to "overcome difficulties" in the current context, avoiding dependence on geopolitical factors, prices and delivery times, thereby optimizing costs and increasing value content," he said.

Mr. Nguyen Quoc Khanh - Chairman of Hawa - said that in the current context, returning to the domestic market will help Vietnamese enterprises create higher growth, control production capacity and once the domestic market is stable, it will help enterprises achieve their dreams of going abroad with their own brands.

"The size of Vietnam's furniture market is estimated at about 15 billion USD with an average growth rate of 5-10% thanks to urbanization and improved living standards, creating a lot of potential for Vietnamese businesses to exploit," Mr. Khanh analyzed.

Vietnamese textiles seek new markets

According to Dr. Huynh Thanh Dien - Lecturer at Nguyen Tat Thanh University, besides the US, the textile and garment industry has a lot of potential in traditional markets such as the EU, Japan, and Korea with high and stable demand. In addition, businesses also benefit from preferential tax rates thanks to Free Trade Agreements (FTAs).

In addition, Canada, the UK and Australia are also emerging markets thanks to the Comprehensive and Progressive Agreement for Trans -Pacific Partnership (CPTPP) and the Free Trade Agreement between Vietnam and the United Kingdom of Great Britain and Northern Ireland (UKVFTA), which help Vietnam exempt import taxes, creating a competitive advantage over other competitors.

Back to topic

Truong Linh - N.BINH

Source: https://tuoitre.vn/doanh-nghiep-viet-ban-hang-sang-my-tim-cach-thich-ung-bien-dong-thue-20250927082335187.htm