Textile and garment enterprises proactively adapt to market fluctuations

With just over a month remaining before the 90-day period of suspended U.S. tariffs on imports from Vietnam expires, textile and garment enterprises in Phu Tho Province are actively implementing response strategies to fulfill their production and business goals amidst mounting challenges from U.S. trade policies.

Export shoe production workers at Hai My Phu Tho Industrial Co., Ltd., located in Soc Dang Craft Village Industrial Cluster, Soc Dang Commune, Doan Hung District.

At present, many textile and garment companies in the province have secured enough orders to maintain operations through the end of the second quarter of 2025 and are currently negotiating contracts for the third quarter. However, while orders in the first quarter were expedited to minimize the potential impact of U.S. tariff changes, those for the second quarter are showing signs of delay as businesses await further policy developments from the U.S.

Mr. Shih Sheng Feng, Deputy Administrative Director of Hai My Phu Tho Industrial Co., Ltd.—a company specializing in leather shoes for export—shared, “In 2024, we exported 3.6 million pairs of shoes. Due to the impact of U.S. tariff policy, we expect this year’s output to reach only 85% of last year’s. On April 3 (Vietnam time), when the U.S. announced new reciprocal tax rates and tariff plans, many customers temporarily suspended orders, causing stagnation in the market and production. However, after the temporary suspension of the tariff was announced on April 10, customers rushed to accelerate production and delivery schedules, requesting orders to be fulfilled within 90 days. In response, the company quickly implemented both short- and long-term strategies, including friendly negotiations with customers, expanding into new markets, optimizing production management, and ramping up production to fulfill second-quarter orders.”

Acknowledging the situation, textile and garment enterprises are treating this as a critical period—approaching production and business operations with a sense of urgency while remaining composed and strategic. Market volatility and rising tariffs are not unfamiliar to Vietnam’s textile and garment industry, which has weathered many storms and still stands firm as the world’s second-largest exporter in the sector.

At YIDA Vietnam Co., Ltd., located in Song Thao Industrial Cluster, Cam Khe Town, Cam Khe District, there is a sense of urgency and determination among workers. The company, a member of Hong Kong-based Crystal Group, specializes in manufacturing denim products for export to Europe, America, and Asia. In the first quarter alone, the company produced over 3 million units.

Mr. Cheng Chi Fai, executive director of the factory, stated, “In times like these, we must stay resilient, committed, and work with maximum efficiency—without panic. We’ve developed a flexible working model and contingency plans for worst-case scenarios. To boost exports, we focus on enhancing production capacity, which includes recruiting more workers and investing in automation to improve productivity.”

As part of their response, the Textile and Garment Trade Union has launched the “Workers’ Month 2025” campaign to boost morale and productivity during this 90-day sprint. Leaders and grassroots union officials are engaging workers with regular updates and motivation to help them understand market dynamics—encouraging calm, determination, and dedication to fulfilling second-quarter orders before the July 5 deadline.

In parallel with the production push, businesses are closely analyzing their raw material supply chains—categorizing items and markets most vulnerable to the new tariffs. This provides a foundation for negotiation with clients and strategic planning moving forward. Companies are also diversifying product lines and supply chains, as well as expanding into new markets to avoid overdependence on traditional ones.

Enterprises continue to call for supportive state policies to help stabilize operations, protect jobs, and secure incomes for workers. With timely updates, flexible guidance from authorities, and coordinated efforts across all levels, Phu Tho’s textile and garment industry is striving to adapt, persevere, and thrive amidst global uncertainty.

Trinh Ha