Enterprises are developing response plans to adapt to changes in the export market in the new context, specifically by prioritizing technological development, workforce training and diversifying export markets.
High growth, but concerns remain
According to provincial Department of Industry and Trade, in February 2025, Binh Duong’s export value was estimated at USD 3.1081 billion, an increase of 9.3% compared to the previous month and a 62% rise compared to the same period in 2024. The estimated trade surplus reached US$ 2.022 billion. Of these, US$ 529 million was contributed by domestic-invested economic sector while US$ 1.493 billion came from the foreign-invested sector. In the first two months of 2025, the province's total export turnover was estimated at US$ 5.953 billion, up 19.7% year-on-year.
The province's major export items recorded positive growth. Specifically, wood and wood products reached US$ 1.1878 billion, accounting for 19.9% of the province's total export value, up 37.3%; textiles and garments reached US$ 565.4 million, up 29%; machinery, equipment, tools and spare parts reached USD 244.7 million, up 16.8%; leather footwear reached US$ 343.1 million, up 37.8% over the same period in 2024.
However, according to leaders of Binh Duong Furniture Association (BIFA), in early February 2025, U.S. President Donald Trump signed an executive order imposing an additional 10% tariff on goods from China, Canada and Mexico. Shortly after, President Trump also announced plans to impose tariffs on countries that place tariffs on U.S. goods. Most domestic enterprises expressed concern as global trade tensions have continued escalating and U.S. tariff decisions have disrupted global trade and finance. “The U.S. has implemented a series of new tariff policies to adjust the trade balance, reduce trade deficits and protect domestic production. These tariffs will alter and shift global trade and Vietnam's production and exports will also be affected”, said Nguyen Liem, Chairman of BIFA.
On February 20, Commercial Counselor and Head of the Vietnam Trade Office in the U.S., Do Ngoc Hung, sent an official notice to related industries’ associations about President Trump's supplementary tariff plan. He stated that the U.S. is considering expanding tariffs on lumber and forest products, with a proposed tax rate of 25% effective from April 2, 2025, similar to pharmaceutical products, automobiles and semiconductors.
According to provincial Department of Import and Export under the Ministry of Industry and Trade, Vietnam has developed two scenarios in response to U.S. tariff changes. The optimistic scenario assumes minimal changes in U.S. import policies toward Vietnamese goods, allowing exporters to maintain or increase exports to the U.S. market. The alternative scenario assumes higher U.S. tariffs on many products, which would negatively impact production and exports, requiring enterprises to flexibly adjust production plans accordingly.
Major efforts required
Phan Thanh Duc, General Director of Binh Duong Garment Corporation in Thuan An city noted that in the short term, rising tariffs on certain exports to the U.S., including textiles, could present opportunities for Vietnamese goods. To mitigate export risks, companies must increase product localization and seek new sources of raw materials. “However, we all recognize that the global market will face unpredictable fluctuations this year, with importers tending to place small and short-term orders. In fact, from Q2-2025, export orders have slowed, prompting textile enterprises to revise production and business plans accordingly to adapt to market volatility”, said Mr. Duc.
Pham Van Xo, Chairman of Binh Duong Import-Export Association stated that despite export market fluctuations, there are still opportunities for local businesses. To take advantage of supply chain shifts and minimize risks from global trade tensions, enterprises must make significant efforts to collaborate, enhance technology and develop a high-quality workforce. These will serve as foundations for businesses to gradually become strategic production partners in the supply chain shift.
However, Mr. Xo also emphasized that opportunities come with challenges, particularly in raw material supply and rising costs such as logistics. Enterprises must always be prepared for these challenges, especially in the U.S. market where the wood industry may face export tariffs and non-tariff barriers.
Nguyen Liem, Chairman of BIFA: “To stabilize export markets, export industries, especially the wood sector must enhance measures to control trade fraud. "We hope that the shift of production to Vietnam will be more strictly controlled, especially regarding trade fraud, so there should be certain precautions in place”.
Reported by Tieu My-Translated by Kim Tin
