As we look towards 2025, the path ahead for Vietnam's manufacturing and services sector is both challenging and filled with potential. While the global landscape presents uncertainties, the resilience and adaptability of Vietnamese businesses stand out. By embracing strategic changes and leveraging inherent strengths, we are poised not only to overcome these hurdles but to transform them into opportunities, fostering sustained growth and innovation.
Introduction
Vietnamese manufacturing and service businesses face a complex landscape in 2025. While both sectors are concerned about macroeconomic stability, rising costs, and regulatory compliance, manufacturing is particularly vulnerable to trade protectionism and export market fluctuations. Conversely, service providers struggle with shifting consumer behaviour and complex human resource management. The new US tariff policy (effective April 2025) imposes up to 46% tariffs on certain Vietnamese goods. Key sectors like apparels, shoes, wood, furniture, agriculture, and seafood are particularly hard hit, facing higher production costs, reduced long-term orders, and intensified competition from rivals in Mexico, Indonesia, and Malaysia.
To keep organisations informed on the current climate, we’ve conducted a focused pulse survey to assess how Vietnamese manufacturers are navigating these shifts. Our findings capture the proactive strategies and risk management efforts emerging within the industry. Responses were collected from a broad spectrum of companies operating in Vietnam, with 78% from manufacturing and 22% from services. Notably, 33% of businesses export directly to the US, while 67% don’t, offering a balanced view of both direct and indirect exposure.
What are manufacturing companies and related service providers thinking about the US tariffs? Looming concerns
86%
23%
How are they responding to the potential impact of US tariffs? Actions in response
Specific actions that businesses are taking to prepare for or mitigate the potential impact can be categorised into three strategies:
Reduce trade dependency and control high costs
Enhance operational efficiency
Protect long-term competitiveness
The way forward
As Vietnam's businesses face the complex challenges posed by global economic shifts and US tariffs, the need to proactively adapt and innovate has never been more crucial.
By focusing on strategic cost management and leveraging expert insights, companies can unlock opportunities for growth and resilience. Embracing the right strategies will not only help businesses navigate current pressures but also position them for long-term success in an evolving market landscape. Essential steps and support services can aid businesses in charting a forward-thinking path.
How PwC delivers impact across key focus areas
At PwC, we help businesses unlock value through major concerns and explore how these strategies come to life through real client success stories.
Improve Margins
We help clients identify cost reduction opportunities and ensure optimal trade-offs between cash outflows and operational efficiency.
Reduce invested capital
We provide support in maximising contract leverage and streamline supply chain inventory to free up working capital.
Assess relocation to lower-cost bases
We evaluate and support strategic relocation decisions to more cost-effective production or sourcing locations.
Rapid diagnostics
We conduct targeted operational assessments to uncover actionable insights for improving cash flow and reducing costs.
Cash & liquidity management
We develop and implement tailored strategies to strengthen liquidity and ensure sustainable financial health.
US Tariff Policies: Impact and Pathways
for Vietnam’s Manufacturing Businesses
Get in touch
Mohammad Mudasser
Director, Deals - Transformation, PwC Vietnam
Tel: +84 28 3823 0796, Ext. 3322
Pham Van Vinh
Director, World Trade Management Services, PwC Vietnam
Tel: +84 28 38230796 Ext. 1503