Vietnamese Businesses Struggle to Adapt to New US Trade Barriers and Environmental Regulations

Strategic Insights -

Despite strong export growth, Vietnamese businesses are facing significant challenges in adapting to new US trade barriers and environmental regulations. The seafood, textile, and wood export sectors have seen growth in the first eight months of the year, but businesses are under pressure due to shifting global trade policies. The 3rd Vietnam Economic Forum 2025 highlighted the unpredictable global market and its implications for Vietnamese exports.

Key Takeaways:

  • Vietnamese seafood exports reached USD 7.3 billion in the first eight months of 2025, a 17% year-on-year increase, with a projected USD 10 billion by year-end, up 10% from 2024.
  • The seafood industry faces a 20% retaliatory tariff along with strict barriers under the Marine Mammal Protection Act (MMPA), which does not recognize equivalency in 12 of Vietnam's fishing practices, affecting crab, mackerel, and tuna exports.
  • The European market has placed Vietnam's seafood under a "yellow card" warning for illegal, unreported, and unregulated (IUU) fishing for the past eight years.
  • The textile and garment sector's exports reached USD 30.7 billion in the first eight months, with a 10% growth in the first half of the year, but dropped to 7% by August due to US retaliatory tariff policy.
  • The industry faces challenges adapting to green transformation, with only 25% of companies having the financial capacity to invest in green technologies, risking losing orders from the European Union.
  • Wood exports reached USD 11.1 billion in the first eight months of 2025, up 6.5% from the previous year, but face similar hurdles, including US retaliatory tariffs, a Section 232 investigation, and stringent anti-deforestation laws from Europe.
  • National export turnover rose over 15% compared to last year, driven by companies rushing to ship goods to the US before new tariffs took effect.
  • The Ministry of Industry and Trade is negotiating with the US for clarity on transshipped goods, which currently face a 40% tariff.

Statistics:

  • Vietnamese seafood exports reached USD 7.3 billion in the first eight months of 2025, a 17% year-on-year increase.
  • The seafood industry is projected to hit USD 10 billion by year-end, up 10% from 2024.
  • Textile and garment sector exports reached USD 30.7 billion in the first eight months of 2025.
  • Wood exports reached USD 11.1 billion in the first eight months of 2025, up 6.5% from the previous year.
  • National export turnover rose over 15% compared to last year.
  • 25% of textile companies have the financial capacity to invest in green technologies.
  • The US imposes a 40% tariff on transshipped products.

Sources:

  • To Thi Tuong Lan, Deputy Secretary General of the Vietnam Association of Seafood Exporters and Producers (VASEP)
  • Tran Nhu Tung, Vice President of the Vietnam Textile and Apparel Association (VITAS)
  • Phung Quoc Man, President of the Handicraft and Wood Industry Association of Ho Chi Minh City (HAWA)
  • Nguyen Cam Trang, Deputy Director General of the Import-Export Department under the Ministry of Industry and Trade
  • Economist Tran Du Lich