Exporters diversify orders to reduce reliance on single market

Facing the risks posed by trade barriers and potential reciprocal tariffs from the U.S., many Vietnamese businesses have proactively shifted their market strategies, stepped up trade promotion, and diversified their orders to reduce reliance on a single market.

After Q1, many businesses operating in key export sectors such as textiles, furniture, and aquatic products reported slight increases in orders compared to the same period last year. However, the overall outlook remains uncertain.

Le Duc Nghia, chairman of the obard of directors of An Cuong Wood-Working JSC, said some of the firm’s export products are still subject to tariffs when entering the U.S. market, while others are temporarily exempt as they are currently under investigation.

An Cuong Wood is proactively working with U.S. partners to maintain tariffs at a manageable level of 15-20%, Cuong said, noting that if this tariff range can be maintained, export activities will remain economically viable.

Taking advantage of the temporary suspension of reciprocal tariffs, An Cuong Wood is accelerating production to meet delivery deadlines to the U.S. It has lowered prices for customers, shared the burden of rising shipping costs, and launched discount programs to maintain its market share, Nghia said.

A similar situation is unfolding in the seafood industry. The pressure to maintain production, retain workers, and balance finances forces businesses to carefully calculate every step they take.

Le Hang, deputy general secretary of the Vietnam Association of Seafood Exporters and Producers (VASEP), stated that seafood exports are expected to shift strongly in May and June, before the U.S. reciprocal tariffs officially take effect on July 9, 2025.

Vietnamese businesses are ramping up exports to the U.S., particularly shrimp and tra fish products, Hang said, adding that export value to the country is expected to rise by 10-15% compared to April 2025, driven by last-minute contracts and price-cutting strategies to retain market share.

Amid pressure from tariff policies and market volatility, many businesses see this as an opportunity to restructure their industries, enhance production capacity, and improve adaptability. Notably, the U.S. decision to delay its tariffs for 90 days for several countries, including Vietnam, has created a “golden window” for companies to prepare.

Nghia said the U.S. market accounts for only about 12% of An Cuong Wood’s revenue. If tariffs rise sharply, the firm can shift focus to alternative markets such as Canada, Japan, the UAE, or Southeast Asia to offset potential losses.

With the same mindset of reducing reliance on traditional markets, many businesses are shifting toward niche markets and high value-added products.

Bach Khanh Nhut, vice chairman of the Vietnam Cashew Association(Vinacas), said the cashew industry is working to expand into the Middle East which is home to 300 million Muslims who favor nutritious products like cashews. This presents a major opportunity to elevate product value and tap into a promising market.

Meanwhile, Thanh Cong Textile Garment Investment Trading JSC also boosts exports to Japan, South Korea, and the EU to reduce reliance on the U.S. market.

Insiders said diversifying markets, restructuring product portfolios, and enhancing production capacity toward greater efficiency and flexibility will not only help Vietnamese businesses cope with short-term risks but also build long-term resilience for sustainable growth.

However, export businesses need a clear legal framework, timely market information systems, and well-connected trade promotion programme to support their efforts, they added.