Although exports remain under a 90-day suspension window for tariff negotiations, the additional 10% reciprocal tariff on top of the existing MFN rate has created huge challenges for exporting countries, including Vietnam. To maximize opportunities during this period, most Vietnamese textile exporters are focusing on accelerating production while awaiting potential policy shifts from the US

Order volumes, pricing pressured by new tariff moves

According to the Vietnam National Textile and Garment Group (Vinatex), while market conditions have remained volatile, flexible management has helped maintain growth. Vinatex Chairman Le Tien Truong said the group launched a "90-day intensive production campaign" to fulfill signed contracts before July 5, 2025, ahead of potential US policy changes.

The group has directed member enterprises to prioritize using in-house fabric sources, assess supply chain risks, and classify products and markets vulnerable to new tariffs. This approach supports negotiation with buyers and helps identify alternative strategies. While the yarn segment remains sluggish, it has seen moderate improvement compared to 2024, allowing businesses to remain profitable, albeit modestly.

Vinatex noted that growth and profitability in early 2025 were supported by early order preparation, favorable global economic conditions, and low inventory levels in key markets. Unlike 2024, orders in Q1 2025 were placed in larger volumes, allowing greater planning flexibility for manufacturers.

However, following the Trump administration's April announcement of a 46% reciprocal tariff on Vietnamese exports, several buyers suspended orders. New orders only resumed after the US agreed to a 90-day suspension. During this window, Vietnamese companies boosted production to deliver orders early, while negotiating cost adjustments and compensating lower unit prices with higher volumes.

Businesses move ahead despite tariff uncertainty

With just 20 days left before the suspension ends, trade negotiations between Vietnam and the US are intensifying. Still, businesses must prepare Q3 orders without clarity on future tariffs. As a result, many exporters are proceeding with mixed-order models: 50% under current rates, 30% contingent on new tariffs, and further orders to follow depending on policy outcomes.

Companies and clients are also agreeing to continue production while reserving the right to renegotiate if tariffs change. Businesses cannot afford to wait for final decisions without disrupting the supply chain.

"At this point, companies need to share risks to maintain customer trust and positioning," said Le Tien Truong. He added that both sides have moved closer in their positions, and Vietnam is unlikely to face excessively high tariffs. Based on this, textile exporters expect sufficient orders through year-end, with projected export growth of 7–8% in 2025.

In May 2025, the nation’s textile and garment exports reached US$3.84 billion, a 6% year-on-year increase, the highest May figure on record, even surpassing the May 2022 post-COVID surge. Total exports in the first five months of 2025 hit US$17.8 billion, up 10% from the same period in 2024, marking an absolute gain of US$1.6 billion.

Textile and garment exports projected to grow by up to 10% amid abundant orders

VOV.VN - With export earnings of more than US$16 billion, garments and textiles are one of the leading industries for export turnover in the nation, with most firms securing signed export orders by the end of the fourth quarter of this year and even until the first quarter of next year.