Vietnamese exporters accelerate shipments to US ahead of new tariffs

Ho Quoc Luc, chairman of Sao Ta Foods Joint Stock Company, told Tuoi Tre (Youth) newspaper that the firm had been beefing up its exports to the U.S. since the first quarter of 2025.

Despite limited raw materials, customers have agreed to bear an additional 10-percent tariff, he said.

"The critical issue is securing shipping space to ensure goods reach U.S. ports in time," Luc shared.

By mid-May, Sao Ta’s value of exports to the U.S. had reached around US$60 million, roughly 75 percent of its total revenue for 2024.

Yet, Luc acknowledged the U.S. market remains challenging due to low profit margins and external factors such as shrimp disease outbreaks, rising input costs, and the pressure of new tariffs.

Despite the hurdles, the U.S. remains attractive for its large consumption scale and year-round demand.

Nguyen Thi Tra My, vice-chairwoman of Sao Ta, revealed that American multinational corporation Costco had ordered 2,000 metric tons of shrimp through its subsidiary, Khang An Foods.

However, with shipping to the U.S. taking about 45 days, the production window is extremely tight.

Sao Ta is also exploring opportunities in Canada and Australia, while cautiously watching for the right moment to enter China.

Though China is the world’s largest shrimp importer, it mainly buys raw or semi-processed goods for local processing.

According to the Vietnam Association of Seafood Exporters and Producers, Vietnam’s seafood exports reached $1 billion in April 2025, up 30 percent year over year.

Total seafood exports in the first four months hit some $3.45 billion, a 28-percent year on year rise.

However, the real challenge lies not just in tariff rates, but also in the tariff disparity between the goods of Vietnam and those of other competitors like India and Ecuador in the U.S. market.

In the wood processing sector, Duc Thanh Wood Processing Joint Stock Company, which relies heavily on exports, appears less fazed by the tariff risk.

Le Hai Lieu, chairwoman of the company, stated that the firm is working overtime to complete large orders within the 90-day window.

Currently, over 76 percent of Duc Thanh Wood’s exports go to Asia, while Europe is ranked second.

The U.S. accounts for only a minor portion.

“From the beginning, we chose to diversify our markets rather than put all our eggs in one basket,” Lieu explained.

Wood industry eyes expansion into new materials

Like shrimp exporters, Vietnamese wood enterprises are under pressure from U.S. tariffs, but see medium-term growth potential.

Nguyen Chanh Phuong, vice-chairman of the Handicraft and Wood Industry Association of Ho Chi Minh City, said that foreign-invested firms contribute 65 percent to Vietnam’s wood export value to the U.S., although they make up just 15 percent of exporters.

Many of these foreign-invested firms have links to China, contributing about $2.5 billion in furniture exports to the U.S.

Phuong noted that Vietnamese firms have shown quicker adaptability compared to their foreign-invested counterparts, many of whom may now reconsider their position due to the tax burden.

This might present an opportunity for the local industry to restructure, he said.

He also highlighted that while Vietnam excels in wooden furniture manufacturing, it lags in producing items from fabric and metal.

With tariff pressure mounting, diversifying into these materials could help the industry stay competitive.

"If the next one to two years are used wisely as tariffs stabilize, this could be a turning point," Phuong said.

Vietnam is among the countries facing steep retaliatory tariffs from the United States, with a 46-percent rate, among the highest announced by President Donald Trump in early April.

According to a White House statement released April 2, President Trump would impose a 10-percent tariff on all countries starting April 5, and higher reciprocal tariffs, effective April 9.

On April 10, the U.S. president announced a 90-day pause on reciprocal tariffs for more than 75 countries, including Vietnam, as part of his broader tariff plan.