HANOI: Vietnamese companies are bracing for a challenging 2025, with major economic headwinds brought on by Donald Trump’s second term in office.
Trump, who was sworn in as the United States’ 47th president on Monday (Jan 20), has repeatedly called tariffs “the most beautiful word in the dictionary”.
In his inauguration address, he said he would possibly impose them on America’s trading partners – a cornerstone of his election campaign. As a candidate, he proposed up to 20 per cent universal tariffs on imports from all countries.
This has led many to wonder if Vietnam will be next, and has become a major cause of concern for firms that are heavily reliant on the US market for revenue.
Among them is Sao Mai Trading, which exports 60 per cent of its products – including outfits for medical staff at clinics and hospitals – to the US.
“We experienced a boom in our business during the COVID-19 pandemic with demand for our products … skyrocketing in the US. We exported millions of products every month,” said the company’s international sales manager Pham Thi Thanh Hang.
The garment factory – located in the Southeast Asian nation’s northern Hai Phong city – has since expanded to serve its American customers.
But when Trump secured his electoral victory last November, confidence dropped at the factory of about 1,200 workers.
