Vietnam's Industrial Tango: Navigating U.S. Tariff Twists

Vietnamese factory workers face fluctuating production demands as U.S. orders shift. Some increase output, while others reduce shifts due to postponed orders. The situation stems from paused U.S. tariffs and cost-cutting by companies. Key sectors like electronics and apparel navigate challenges amid investment pauses and strategic adjustments.

Some factory workers in Vietnam have been instructed to ramp up the production of goods destined for the U.S. market. Meanwhile, others find their working hours trimmed to merely three days a week due to postponed or canceled U.S. orders, according to industry executives.

This stark contrast in strategies reflects the chaotic response from exporters in Vietnam, a Southeast Asian industrial hub. Under the Trump administration, the region faced a 46% tariff before a pause in duties, which remains in effect until July. Calvin Nguyen, head of the logistics firm WeDo Forwarding, noted that factories are altering production plans and schedules—splitting shifts between two different three-day blocks—as substantial orders are delayed.

Nguyen highlighted three companies producing garments, shoes, and agricultural goods, which had to shift work plans after the U.S. President paused 'reciprocal' tariffs on April 9. Additionally, two business surveys and input from three industry sources corroborated the adoption of cost-cutting strategies by both Vietnamese companies and foreign firms delaying investments.

(With inputs from agencies.)