Diversify markets given Trump tax risks, UOB exec advises Vietnam firms

Diversifying and expanding markets will bring about new opportunities for Vietnamese products in the context of Donald Trump becoming U.S president for the second time and Vietnam having a trade surplus with the U.S.

Suan Teck Kin, executive director, head of global markets and economic research at UOB, made the statement at the "Vietnam's future economy, opportunities and challenges" seminar, co-organized by the Investment and Trade Promotion Center of HCMC (ITPC) and UOB in Ho Chi Minh City on Tuesday.

"Vietnam enterprises should take steps to reduce over-dependence on one or some markets, and the Vietnamese government should increase infrastructure investment to mitigate external risks and strengthen future competitiveness," he added.

Suan Teck Kin noted that in January 2025, Vietnam earned $6.1 billion from computers, electric products and parts, but only $700 million from coffee, Vietnam's key product with giant room for growth.

Products such as textiles and garments, footwear, wood and wooden products achieved an export turnover of $3.2 billion, $1.9 billion, and $1.4 billion, respectively. Another Vietnamese product that is also known to other markets is seafood, with export revenue of $800 million in January.

These are Vietnam's key products and still have huge room for growth, he stressed.

He pointed out two challenges for the Vietnamese economy. First, ASEAN could be targeted by the U.S., which runs trade deficits with the bloc generally and particularly with Vietnam, Thailand, Indonesia, and Malaysia. New or larger tariffs could further disrupt trade and investment flows globally and in ASEAN, including Vietnam.

Second, financial market risks, including exchange rate fluctuations, highlight the importance of hedging.

Regarding infrastructure, Suan Teck Kin highlighted that the government's strong investment in this field will be an opportunity for the Vietnamese economy, creating momentum to develop.

Cao Phi Van, deputy director of the Investment and Trade Promotion Center of HCMC (ITPC), said that during Trump's previous term (2017–2021), he introduced many economic and trade policies that had strong impacts worldwide.

His “America first” policy, trade protection measures, the U.S.-China trade war, and changes in tax and investment policies disrupted global supply chains, affecting trade flows and foreign investment. As an economy deeply connected to global trade, Vietnam was also significantly affected, she said.

At the beginning of his new term, President Trump has already made several policy adjustments. Experts predict that his administration will continue a tough trade stance, possibly tightening import controls, adjusting tariffs, and strengthening foreign investment regulations. These changes could greatly impact the global economy, creating both opportunities and challenges for Vietnamese businesses in attracting investment and adjusting their business strategies.