Vietnam's footwear exports to US fell 27% in Sept amid Trump tariffs

Vietnam's September exports to the U.S. saw significant sectoral declines, with footwear plunging 27% to $611 million due to U.S. tariffs, alongside sharp drops in textiles and phone components. However, total exports to the U.S. only edged down 1.5% to $13.7 billion, cushioned by gains in coffee and machinery exports, indicating a mixed impact of trade policies and some diversification in Vietnam's export economy.

Analysis

HANOI, Oct 6 (Reuters) - Vietnam's footwear exports to the United States plunged 27% in September to $611 million, marking the steepest decline among all sectors following the implementation of tariffs by the U.S. government, according to customs data released Monday. Textile exports also saw a sharp monthly drop of 20%, while shipments of phones and components fell by 24.38%, according to the customs. The Reuters Tariff Watch newsletter is your daily guide to the latest global trade and tariff news. Sign up here. Despite these sectoral declines, Vietnam's overall exports to the United States edged down just 1.5% to $13.7 billion in September, cushioned by gains in coffee and machinery exports, the data showed. Reporting by Phuong Nguyen; Editing by David Stanway Our Standards: The Thomson Reuters Trust Principles. Vietnam's export performance to the United States in September reveals significant sectoral divergence driven by U.S. trade policy. The data indicates severe pressure on specific manufacturing industries, with footwear exports plummeting 27% to $611 million, marking the most substantial decline. Similarly, textile exports fell 20% and phone/component shipments dropped 24.38%, underscoring the direct impact of tariffs on these key sectors. Despite these sharp contractions, Vietnam's aggregate export figure to the U.S. demonstrated notable resilience, declining by a marginal 1.5% to $13.7 billion. This overall stability was achieved through offsetting growth in other categories, namely coffee and machinery exports. This suggests a dual-track economy where tariff-exposed industries are suffering while others are providing a crucial buffer, pointing to a potential shift in the composition of Vietnam's export base and its ability to absorb targeted trade shocks.

Key Decisions for Investors

• Investors with exposure to Vietnamese footwear, textile, and electronics manufacturers should scrutinize their holdings, as these sectors are demonstrably vulnerable to U.S. tariff policies and have experienced sharp declines in demand.
• Consider overweighting Vietnamese sectors that have shown resilience and growth, such as machinery and agricultural commodities like coffee, which are currently offsetting weakness elsewhere.
• Monitor U.S. trade policy developments closely, as the stark divergence between sectors highlights that a granular, sector-specific approach is critical to managing risk and identifying opportunities within the Vietnamese market.