On the outskirts of Ho Chi Minh City, factory workers at Dony Garment have been working overtime for weeks. Ever since Donald Trump announced a whopping 46% trade tariff on Vietnam, they’ve been preparing for the worst. They’re rushing through orders to clients in three separate states in America.
Sewing machines buzz with the sound of frantic efforts to mitigate the impact of Mr Trump’s decision, which he may have postponed for 90 days, but no one in this factory is taking anything for granted.
Workers like Do Thi Anh are feeling the pressure. She has two children to raise and the potential of reduced income due to high tariffs is a concern. However, her employer, Pham Quang Anh, has a strategy in place to reduce dependency on the American market.
Other colleagues and competitors may not be as fortunate; Mr. Pham’s competitors who export all their garments to America face severe risks from the tariff threat.
The impact of the tariff muddle could have broader implications for Vietnam. Analysts believe that Vietnam will need to convince the US of its willingness to crack down on trans-shipments and limit Chinese manufacturing in the country, a challenging concession given Vietnam’s economic reliance on China.
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Source: https://news.sky.com/story/inside-the-vietnamese-factory-preparing-for-the-worst-since-trumps-tariff-threat-13357895
