Businesses prove flexible in response to U.S. reciprocal tariffs

On August 1, 2025, the United States published a Presidential Order by Donald Trump adjusting reciprocal tariff rates for 69 countries and territories, including Vietnam. The reciprocal tariff rate for Vietnam was reduced from 46% to 20%. This change is said to cause Vietnam’s exports to the US market to decline by 9–10% in value.

Dong Nai – the largest industrial hub in the Southeast region – is home to many enterprises exporting to the U.S. market. Photo: Cong Nghia

In Dong Nai, one of the country’s major industrial centers, provincial leaders are working alongside businesses, proactively adapting to the new context while diversifying markets and improving product quality to overcome challenges together.

Flexible adaptation

Tinh Nguyen Hao One Member Company Limited, based in Phuoc Tan Ward, specializes in precision mechanical processing, automatic machine design and manufacturing, and other supporting industries. Although its exports to the US market account for only 5% of the company’s total shipments, the imposition of a 20% reciprocal tariff by the U.S. still presents a significant challenge. However, its experience in dealing with technical barriers and anti-dumping policies in the past, combined with proactive market restructuring, strict quality control, and transparent product origin, help provide a solid foundation for the company’s confidence in weathering difficulties.

Nguyen Quoc Hung, Director of Tinh Nguyen Hao Company, said: “To respond to this unfavorable scenario, our company has quickly implemented several solutions, most importantly practicing cost-saving measures, maximizing traditional markets, strengthening partnerships, and exploring new markets.”

Businesses also show their proactiveness by actively participating in trade promotion activities organized by the province. In recent times, the Department of Industry and Trade (DoIT) has worked closely with international trade promotion organizations to hold seminars, connect supply and demand, and seek alternative markets in Europe, East Asia, and the Middle East.

“The expansion and diversification of export markets is a vital factor in the current period. Dong Nai is therefore supporting businesses in accessing new markets through international e-commerce platforms, online trade fairs, and economic diplomacy. Negotiations between partners through trade promotion programs have been very productive, especially on matters related to contracts and product quality. These connections have given partners the chance to engage in in-depth cooperation discussions, and businesses are very enthusiastic about this approach,” said Nguyen Van Linh, Deputy Director of the Dong Nai Center for Investment, Trade, and Tourism Promotion.

Turning challenges into opportunities

The U.S. is currently Vietnam’s second-largest trading partner, one of countries with the largest trade surplus with Vietnam, and an important export destination for Vietnam. Amid a complex global environment combining trends of trade liberalization, protectionism, and growing technical and trade barriers in major markets, Dong Nai’s business community is actively assessing the situation, evaluating impacts, and developing flexible response scenarios. Provincial leadership is also committed to accompanying businesses with a series of policies, such as establishing a task force to support private enterprises, operating as a “one-stop hotline” to resolve obstacles, increasing dialogue, and listening to business feedback to contribute to institutional and policy development. In particular, Dong Nai’s provincial investment development fund has earmarked VND 2 trillion to support private enterprises.

“The difficulties arising from the US’s reciprocal tariffs are also opportunities for Dong Nai entrepreneurs and businesses to proactively restructure the economy and their operations, creating positive long-term changes. We have directed all stakeholders, from businesses and banks to state management agencies, to develop more specific policies and solutions to respond to the US tariff scenario,” said Vo Tan Duc, Deputy Secretary of the Provincial Party Committee and Chairman of Dong Nai People’s Committee.

In the first half of 2025, two-way trade between Vietnam and the U.S. reached about US$ 87 billion. Dong Nai contributed an estimated US$ 4.68 billion in exports to the U.S. market, accounting for 35.5% of the province’s total export turnover. Although Dong Nai’s exports to the U.S. account for only a modest market share, the 20% reciprocal tariff imposed by the Donald Trump administration will still pose significant challenges for local businesses.

Dong Nai still has several other billion-dollar export markets, such as Japan, China, and South Korea. “We will continue to support businesses in maintaining and renegotiating orders, while promoting alternative markets, especially those with free trade agreements with Vietnam, to reduce dependence on any single export market,” said Pham Van Cuong, Deputy Director of the DoIT.

It can be said that the U.S. reciprocal tariff policy is a major challenge, yet also an opportunity for Vietnamese businesses in general, and Dong Nai in particular, to review and improve themselves. For Dong Nai enterprises, it is crucial to flexibly implement investment promotion measures, diversify export markets, tap into the domestic market, and improve the business environment. This will not only help mitigate the negative impact of U.S. tariff policies but also create favorable conditions to restructure the economy towards greater internal strength and sustainable growth.

By: Hung Cat

Translated by: M.Nguyet-Thu Ha