Tran Viet Anh, the association’s vice chairman, said at a seminar held Wednesday to discuss the city’s economic growth that workers at these firms are worried about potential layoffs.

The event was held before the tariffs were postponed by 90 days for most countries. The U.S. had earlier imposed tariffs of 46% on imports from Vietnam.

HCMC exported US$7.4 billion worth of goods to the U.S. in 2024, making the country its second-largest export market after China.

A report from the city Department of Industry and Trade said many products are expected to be severely affected by the tariffs including textiles and footwear, which account for around 21% of exports to the U.S., electronics and components (20%), wood and furniture (8%), and seafood (2%).

The impacts on these sectors are also likely to have a chain reaction that affects assembling firms and component producers.

The electronics and components sector is expected to be hit hard as the U.S. might target products suspected of containing materials from third countries while the wood and furniture sector risks losing market share to Indonesia and Mexico.

The HCMC Institute for Development Studies forecast that if the U.S. eventually imposes the 46% tariff rate, electronics, textiles, footwear, and furniture exporters could lose half their market share in the U.S., forcing many to shut down.

Bui Ta Hoang Vu, director of the trade department, said this would also hit economic growth and have social consequences such as rising unemployment as all those sectors are labor-intensive.

Experts and businesses have called on authorities to find measures to financially support affected firms and explore new export markets.

Nguyen Ngoc Hoa, the association’s chairman, said the government should negotiate different tariff rates for each product based on demand in the U.S.

It should also create jobs through measures such as boosting public spending and speeding up infrastructure and transportation works.

Dr. Nguyen Minh Ha, rector of the HCMC Open University, said the city needs support plans for unemployed and underemployed workers.

Nguyen Van Duoc, chairman of the city People’s Committee, said businesses should deal calmly with the fallout of the tariffs.

The government is actively negotiating with the U.S. and the city is considering various support policies for businesses, he assured.

He called it an opportunity to restructure the economy and reduce its reliance on exports.

The city would implement demand-stimulus programs, with a focus on startups and businesses in auxiliary industries. It will also promote investment in other key markets and seek to expand into new ones.

The city Department of Home Affairs is studying measures to minimize the risks of rising unemployment.

Source: VnExpress