Vietnam seeks to diversify markets to reduce export risks

Export activities at the Cai Mep - Thi Vai port cluster in Phu My township in southern Ba Ria - Vung Tau province. (Photo: VNA)

Vietnam’s industries and businesses are advised to better the diversification of markets in 2025, given that unpredictable fluctuations and escalating trade tensions may pose negative impacts on the country’s export activities.

According to experts, US President Donald Trump’s recent signing of an order imposing tariffs on exports from Canada and Mexico, as well as increasing tariffs on products from China, is seen as the beginning of the tariff policies under the Trump administration. This also leaves the possibility of the US imposing tariffs on imports from other countries.

Pham Van Viet, Chairman of the Board of Directors of Viet Thang Jean Co., Ltd. (VitaJean), stated that the company has been making efforts to proactively respond to the difficulties predicted in the market. In addition, it has been making the most of opportunities to diversify its raw material sources by increasing the localisation rate, importing materials from new markets such as Pakistan, and rebuilding its supply chain.

For this year, the textile and garment industry aims for growth of around 13% compared to 2024, reaching a revenue of 47 - 48 billion USD. However, VitaJean and many other businesses are confident in setting a maximum growth target of up to 15%, stated Viet.

As a leading company in candy production, Bibica Corporation is planning to expand into markets in the Republic of Korea, Japan, and China through the Walmart hypermarket chain, thanks to its diverse product range such as fresh cakes, layer cakes, gummies, hard candies, and mooncakes. Although the domestic market remains the company's main source of revenue, it plans to increase the proportion of export revenue to 20% over the next three years to mitigate risks.

Diep Thanh Kiet, Vice Chairman of the Vietnam Leather, Footwear, and Handbag Association (Lefaso), suggested small- and medium-sized enterprises choose markets with lower risks and more stability, such as the EU, Japan, or even the ASEAN market. This, however, depends on the specific capabilities and circumstances of each business, as not every company is able to diversify its export markets.

Rice packaging for export at the factory of Loc Troi Group. (Photo: VNA)

To maintain the country’s export position, experts suggested that, in addition to expanding export markets, businesses should bring into full play 17 free trade agreements (FTAs) that Vietnam has signed with partners. This will help enhance export value and reduce heavy dependence on some certain countries.

This approach can also mitigate losses when trade policies change. Furthermore, authorities should find solutions to increase imports from the US, particularly machinery, equipment, and advanced technology, thereby helping improve the domestic production capacity, boost labour productivity, and create sustainable growth in the coming time.

According to Nguyen Anh Son, Director of the Ministry of Industry and Trade’s Agency of Foreign Trade, although exports still face volatile global conditions in 2025, the ministry will continue working to facilitate businesses, and perfect legal documents in a way that assists them in participating in export-import activities, diversifying export markets and promoting economic growth.

Minister of Industry and Trade Nguyen Hong Dien emphasised that the ministry plans to focus on implementing concerted and effective solutions to mobilise competitive advantages and make the most of export market opportunities. This will involve promoting and supporting businesses and industry associations to effectively tap into traditional markets that still hold great potential; and researching, negotiating, and establishing partnerships with new ones.

Additionally, it will strive to take advantage of the opportunities brought by the signed FTAs, enhance the role of Vietnam’s trade offices abroad in gathering information and promptly reflecting global economic developments and policies of host countries. This will help state agencies respond quickly and effectively, ensuring the highest national interests. The ministry will also provide warnings and recommendations for businesses and industry associations on appropriate solutions, while promoting targeted and focused trade promotion activities.

Attention will be paid to diversifying promotional activities, increasing early risk warnings, and supporting businesses when trade defence lawsuits arise, added Dien./.