'Golden' opportunity for Vietnam’s wood, shrimp industries after 20% reciprocal tariff
While the U.S.'s 20% reciprocal tariff presents new challenges, Vietnam’s wood and shrimp industries still see major opportunities if businesses can adapt and take advantage.
On April 2, the U.S. announced a 46% reciprocal tax on Vietnamese exports. Following several rounds of negotiations, the rate was reduced to 20%, effective July 7 - slightly higher than the 19% levied on some other Southeast Asian countries.
According to Vu Kim Hanh, chairwoman of the High-Quality Vietnamese Goods Business Association, the new tariff regime opens a “golden opportunity” for Vietnam’s wood sector.

Wood products made in Vietnam. Photo courtesy of the Handicraft & Wood Industry Association of HCMC (Hawa).
Vietnam currently records $17 billion in annual wood exports, ranking sixth worldwide. In the U.S. market, Vietnam has long stood in second place behind China. However, as of July 2025, Vietnam has risen to the top spot because Chinese wood products have been blocked from entering the U.S.
Hanh stressed the need to redefine Vietnam’s wood export image. For years, the industry has faced accusations of deforestation. In reality, all Vietnamese wood exports are subject to strict controls, requiring certification from plantation forests or legally imported sources.
With China sidelined, Vietnam’s challenge is to seize this “heaven-sent” advantage by restructuring its supply chain to be more efficient, dynamic, and consumer-focused.
“Chinese businesses have long anticipated the trade war and moved infrastructure, supply chains, and marketing capabilities into the U.S. Vietnam cannot afford to stand still,” Hanh noted.
Shrimp sector: Stable ground, new prospects
For shrimp, the new tariff is comparable to that imposed on competitors, which allows Vietnam to maintain its processed shrimp market share in the U.S., according to Ho Quoc Luc, chairman of Sao Ta Foods JSC. He added that if India’s 50% tariff remains unchanged, Vietnam could even expand its U.S. market presence.
However, risks remain. A recent lawsuit involving Stapimex, a mandatory respondent in U.S. Department of Commerce proceedings, could pose challenges if documentation is deemed insufficient. To mitigate risks, Sao Ta is expediting shipments to U.S. ports before the tax deadline of October 5 while also diversifying into other markets.
Spices: Quality is key
Nguyen Trung Dung, founder and CEO of Dh Foods, said his company has focused more on cross-border e-commerce through Amazon than direct U.S. exports. Survey results show Vietnamese spices remain competitive against products from China, India, and Thailand, even after factoring in taxes and logistics.
Dung emphasized that Vietnamese spice producers must raise quality standards to win over American consumers, particularly small and mid-sized businesses.
Beyond wood: Handicrafts and new materials
Alongside wood exports, Vietnam’s handicraft industry is also benefiting from innovation. Hanh highlighted elephant grass as a promising new raw material. Traditional inputs like rattan, sedge, and water hyacinth are depleting, but elephant grass grows naturally, tolerates salinity, and requires no fertilizer or pesticides.
Handicrafts made from this resilient material have already found success in major U.S. retail chains such as Walmart and Home Depot, as well as on Amazon’s e-commerce platform.
A turning point
With China restricted from the U.S. market, Vietnam’s wood industry is well positioned but must strengthen post-production value creation - particularly in modern design and customer insight - to sustain its new lead. For shrimp and spices, steady tariffs and shifting global trade conditions create both opportunities and risks.
The message from industry leaders is clear: Vietnam has been handed a rare opening. The challenge now is to transform it into lasting growth.
- Read More
Central Vietnam province reviews investment proposal for thermal power project after Thai EGATi pullout
Authorities in the central province of Quang Tri are evaluating a proposal from Power Generation JSC 1 (EVNGENCO 1), a subsidiary of state utility Vietnam Electricity (EVN), to take over the Quang Tri thermal power plant project, following the withdrawal of Thai investor EGATi.
Energy - Tue, September 16, 2025 | 1:44 pm GMT+7
Amata to sell stakes worth $46 mln in Vietnam units to Novaland-tied buyers
Amata VN, the Vietnam arm of Thailand’s leading industrial park developer Amata, has approved a plan for its subsidiary Amata City Long Thanh Urban JSC (ACLT) to sell its remaining 51% stakes in two entities to local developer Novaland-linked buyers.
Real Estate - Tue, September 16, 2025 | 12:19 pm GMT+7
Vietnam already meets FTSE's criteria for stock market status upgrade: Finance Minister
Vietnam has fulfilled the criteria for a stock market status upgrade by FTSE Russell through reforms aimed at facilitating foreign investment inflows into its market, said Minister of Finance Nguyen Van Thang.
Economy - Tue, September 16, 2025 | 9:36 am GMT+7
Banks should be allowed to distribute, invest in mutual fund certificates: Vietnam's finance ministry
The Ministry of Finance is proposing a key reform that would allow commercial banks to invest in and distribute mutual fund certificates, as part of a broader plan to restructure the investor base and foster the development of Vietnam’s fund management industry.
Finance - Tue, September 16, 2025 | 8:00 am GMT+7
E-commerce boom a major driver of Vietnam's packaging paper industry growth
Vietnam's paper packaging industry is entering a period of strong growth, with an average annual growth rate forecasted at 10% until 2030.
Companies - Mon, September 15, 2025 | 10:20 pm GMT+7
Vietnam needs support from UK in developing international financial center: Deputy PM
Permanent Deputy Prime Minister Nguyen Hoa Binh has called on the UK and the City of London to continue supporting and accompanying Vietnam in promoting and introducing its international financial center (IFC).
Finance - Mon, September 15, 2025 | 10:12 pm GMT+7
Vietnam enforces 8% capital adequacy ratio for banks from Sept 15
Commercial banks and foreign bank branches in Vietnam must maintain a minimum capital adequacy ratio (CAR) of 8%, including at least 4.5% in Tier 1 core capital and 6% in Tier 1 capital, starting from September 15.
Banking - Mon, September 15, 2025 | 10:04 pm GMT+7
Tool for wood traceability management debuts in Vietnam
The Vn-WoodID application has been officially launched in Vietnam, becoming a key tool contributing to wood traceability.
Companies - Mon, September 15, 2025 | 10:00 pm GMT+7
Sun Group, US Embassy foster aviation-hospitality cooperation
Sun Group, in collaboration with the US Embassy in Vietnam, hosted the US – Vietnam Aviation Partnership Roundtable on September 12, bringing together 15 leading American corporations in aviation, technology, and financial services, opening up opportunities to position Phu Quoc as a new aviation and tourism hub in the region.
Companies - Mon, September 15, 2025 | 9:54 pm GMT+7
Vietnam tops Thai giant SCG’s overseas markets with 9% revenue contribution in H1
Vietnam remained the largest overseas market for Thailand’s Siam Cement Group (SCG) in the first half of 2025, contributing 9% of consolidated sales.
Companies - Mon, September 15, 2025 | 8:10 pm GMT+7
Central Vietnam to have new airport Mang Den
Procedures to adjust Vietnam's airport system planning, including the addition of Mang Den Airport in central Vietnam, are being proceeded, according to the Ministry of Construction.
Infrastructure - Mon, September 15, 2025 | 5:16 pm GMT+7
Vietnam's government seeks to position country as 'regulated hub for digital assets in Asia': Dragon Capital
The Vietnamese Government has advanced the regulation of digital assets, with a resolution launching a five-year pilot framework for issuance and trading. This framework signals the Government’s intent to position the country as a regulated hub for digital assets in Asia, which could attract new capital inflows, write Dragon Capital analysts.
Economy - Mon, September 15, 2025 | 2:20 pm GMT+7
Agribank introduces sizable $4.17 bln preferential credit package
Right from the beginning of 2025, Agribank launched a substantial preferential credit package worth VND110 trillion ($4.17 billion) to support individual customers.
Companies - Mon, September 15, 2025 | 1:32 pm GMT+7
'Precious space' in Vietnam's monetary policy
The Federal Reserve's continued cuts in 2025, with the most recent in September, are considered a valuable policy "space" for the State Bank of Vietnam (SBV) to maintain low interest rates to support growth without having to worry too much about exchange rates.
Economy - Mon, September 15, 2025 | 10:15 am GMT+7
Vietnam’s central bank sells $1.5 bln to stabilize currency: broker MBS
The State Bank of Vietnam (SBV) intervened in the foreign exchange market by selling approximately $1.5 billion via 180-day cancelable forward contracts from August 25-26, in an effort to ease pressure on the Vietnamese dong, according to a recent report by MB Securities (MBS).
Banking - Mon, September 15, 2025 | 8:04 am GMT+7
Hanoi aims to break ground on $11.4 bln Red River Boulevard & Landscape project by Jan 2026
A consortium of “tunnel king” Deo Ca Group and real estate developer Van Phu Invest has been assigned by the Hanoi People’s Committe to prepare an investment proposal for the VND300 trillion ($11.37 billion) Red River Boulevard & Landscape project.
Real Estate - Mon, September 15, 2025 | 7:55 am GMT+7