Introduction: A Trade Earthquake with Hidden Opportunity
In 2025, the U.S. government under President Donald Trump has imposed sweeping new tariffs on goods from a list of key trade partners, including Vietnam.
These measures, which include duties of up to 46% on certain imports from Vietnam, have sent shockwaves across global supply chains.
This move aims to reduce the United States’ growing trade deficit, particularly with countries whose exports have surged dramatically over the last five years. In the case of Vietnam, the U.S. trade deficit reached a record $98 billion USD in 2024 — placing the Southeast Asian nation among the top five contributors to the U.S. deficit.
Indeed, Vietnam has been exporting more than ever before, and to the United States in particular. According to Vietnam’s General Department of Customs, total bilateral trade reached $132 billion USD in 2024, of which nearly $119 billion were Vietnamese exports to the U.S.
This represented a 23.3% year-over-year increase and reinforced Vietnam’s position as a key supplier in industries ranging from consumer goods to industrial inputs.
The main categories of Vietnamese exports to the U.S. include:
Garments and textiles: accounting for roughly 40% of Vietnam’s total U.S.-bound exports.
Wood and wooden furniture: projected to reach $10 billion in 2025.
High-tech products, including electronics and telecommunications equipment, with 15–18% annual growth.
Steel and related metals, with over 1.67 million tonnes shipped to the U.S. in 2024.
The sudden imposition of tariffs on these goods has caused major concern in both Hanoi and Ho Chi Minh City, particularly among export-driven firms and foreign-invested manufacturers. But amid the panic, one aspect of the trade equation remains curiously under-discussed: these tariffs do not apply to services.
This is more than a technicality. It’s a door wide open.
In other words, software development, QA testing, UI/UX design, animation, back-office operations, and similar offshore services remain untouched. This nuance is not a loophole — it’s a massive opportunity for U.S. companies willing to look beyond physical goods and into Vietnam’s true long-term strategic advantage: its digital talent pool.
This article will explore that opportunity in depth. We’ll examine what the tariffs mean for American businesses, what sectors are at risk, and — most importantly — why American companies should be doubling down on offshore services in Vietnam.
Through case studies, cost comparisons, and staffing trends, we’ll show how Vietnam remains not just a viable partner, but a smart strategic choice in a shifting global trade environment.
Industries Most Affected by Tariffs (Potential Losers)
Certain industries that traditionally rely heavily on imports are facing immediate cost hikes. Here’s a breakdown of sectors that are most at risk and those that can still thrive by pivoting to offshore staffing:
1. Textiles and Apparel: T-Shirt Example
Scenario 1: Made in Vietnam (materials & manufacturing) with US-based design and marketing before tariffs.
Scenario 2: Same as Scenario 1, but after the imposition of tariffs on imports from Vietnam.
Scenario 3: Made in the USA (materials & manufacturing) but leveraging Vietnam for design and marketing services.
Conclusion : Exporting design and marketing services to Vietnam can soften the blow of the 46% tariffs on garment imports from Vietnam, but US companies producing locally would face drastically reduced margins due to higher domestic manufacturing costs.
2. Furniture and Wood Products: Sofa Example
Scenario 1: Materials sourced internationally, manufactured in Vietnam, with design and marketing in the US before tariffs.
Scenario 2: Same as Scenario 1, but after tariffs are applied to goods imported from Vietnam.
Scenario 3: Materials still sourced internationally, but manufacturing shifts to the US, and design/marketing are outsourced to Vietnam.
Conclusion: For furniture, the cost attributed to design and marketing is insufficient to offset the substantial expense of relocating production to the US; thus, despite tariffs, manufacturing in Vietnam likely remains economically preferable for many.
3. Conclusions
The recent imposition of tariffs, particularly the 46% duty on certain imports, poses a significant threat to industries heavily reliant on physical goods and international supply chains.
Sectors like textiles and apparel, as illustrated by the T-shirt example, and furniture and wood products, demonstrated by the sofa example, face immediate cost increases and margin erosion.
The increased cost of imported materials and finished goods makes them less competitive in the US market. Other industries at risk include:
- Automotive: Increased costs for imported parts.
- Consumer electronics: Higher prices for devices manufactured overseas.
- Agriculture: Potential for retaliatory tariffs on US exports.
- Steel and related metals: Increased costs for US manufacturers relying on imported steel.
Industries Benefiting from Offshore Staffing in Vietnam (Potential Winners)
Certain sectors, especially those focused on technology, gaming, and digital services, are positioned to remain largely unaffected by the tariffs. They can pivot quickly to offshore staffing without risking tariff-related price increases on their physical products. Here are the industries that stand to gain:
1. Video Games: Triple A Example
Scenario 1: A large US studio handles all development, art, sound, marketing, testing, and localization in the USA.
Scenario 2: Same as Scenario 1 (tariffs are not applicable to digital goods).
Scenario 3: All aspects of game development (development, art, sound, marketing, testing, localization) are handled using resources in Vietnam.
Conclusion: US companies stand to gain significantly by outsourcing game development, art, sound, testing, and localization to Vietnam's growing digital talent pool, allowing them to reduce production costs without being affected by tariffs on digital goods.
2. Electronics and High-Tech Products: SmartWatch Example
Scenario 1: Manufactured in Vietnam with US-based development, marketing, and design before tariffs.
Scenario 2: Same as Scenario 1, but after tariffs increase the cost of importing from Vietnam.
Scenario 3: Realistically, given the complexity of making such devices, both in terms of factories and workforce, SmartWatches would still need to be manufactured in Vietnam, but on top of that, development, marketing, and design could be shifted from USA to Vietnam.
Conclusion: The significant portion of the smartwatch retail price tied to software development, design, and marketing presents a major opportunity for tariff mitigation through outsourcing these high-skill jobs to Vietnam, potentially shifting the US focus to lower-skilled manufacturing.
3. Conclusions
Conversely, industries focused on digital services and those able to leverage offshore talent are well-positioned to thrive. Vietnam's large and growing digital talent pool offers a strategic advantage, particularly in sectors where services can be easily outsourced without incurring tariffs.
Companies that pivot to offshore staffing in Vietnam can significantly reduce costs and maintain competitiveness. Industries that stand to gain include:
- Technology: Software development, QA testing, UI/UX design, and cybersecurity.
- Gaming: Game development, art, and animation.
- Digital Marketing: SEO, content creation, social media management.
- Customer Support: Call centers, email support, and chat support.
- Electronics and High-Tech Products: Pivoting immaterial work to Vietnam.
- Business Process Outsourcing (BPO): Back-office operations, data entry, and administrative tasks.
Cost Breakdown: Why Vietnam Still Wins on ROI
Let’s compare what you pay for full-time employee in the U.S. versus Vietnam, based on real staffing data.
In short: Vietnamese staff cost 30–40 cents on the dollar, and often deliver better output due to leaner hierarchy and 24-hour turnaround when working with Western clients.
Vietnam's Digital Workforce: A Strategic Asset
Education: Over 40,000 tech graduates enter the workforce annually, with strong representation in:
- QA & software testing
- Web and app development
- Game design & animation
English Proficiency:
- Vietnam ranks #58 in the EF English Proficiency Index, above China and Thailand.
- In tech sectors and urban centers like Ho Chi Minh City and Hanoi, spoken and written English is standard.
Remote Readiness:
- 95% of developers and digital staff work comfortably on Slack, Jira, Figma, Trello, etc.
- Many are trained with international Agile/Scrum methodologies
The Risk of Doing Nothing: Losing the Competitive Edge
Let’s be blunt: the worst decision U.S. companies can make right now is waiting.
Every quarter without action:
- Your competitors are trimming 60–70% off staffing costs
- You’re overpaying for roles that can be done offshore without trade risk
- Tariffs are eating into your margins while service costs remain untouched
Example: A B2B SaaS firm based in Austin waited too long to reassign QA roles offshore. When they finally moved 8 positions to Vietnam, their operating margin improved 18% in one quarter. They could’ve done it a year earlier and saved $350,000.
The Shift Towards Digital Integration
Ultimately, the new tariff landscape is a chance for U.S. companies to rethink their operational models. While industries reliant on physical goods face near-immediate consequences, the service sector — especially tech-related services — remains a major opportunity for strategic growth.
Companies that pivot to leveraging offshore talent in areas like QA testing, software development, animation, and digital marketing will not only maintain their profitability but could even emerge stronger, using cost-saving measures as a platform for future innovation.
As tariffs continue to reshape global trade, it’s clear that services are the lifeline for many industries. Moving operations that don’t rely on physical goods can keep companies agile and competitive, regardless of external economic pressures.
This is not just an opportunity to save on tariffs — it’s a chance to build a more sustainable, tech-forward business model for the future.
Strategic Playbook: What U.S Business Impacted by the Tariffs Should Do Now
1. Audit Your Team: Identify Location-Agnostic Roles
Not every role needs to be on-site. Start by mapping your team structure and workflows to determine which tasks can be done remotely without compromising performance or security. Consider:
- Design & Prototyping – Graphic design, UX/UI, and industrial prototyping can often be executed offshore with collaborative platforms like Figma or Fusion 360.
- Marketing – Campaign strategy, ad operations, SEO, and content creation can be easily outsourced with oversight.
- Customer Service – Support teams (email, chat, voice) can be managed across time zones to ensure 24/7 coverage.
- QA & Testing – Especially for digital products, testing can be offshored without shipping physical prototypes.
- Development – Software engineering, backend systems, and web/app development are prime candidates for offshore talent.
2. Classify Offshore Potential: Reduce Tariff Exposure
Create a matrix of all operational and product-related functions and highlight where offshore substitution could reduce your tariff burden. The goal is to restructure supply chains and operations to keep taxable goods minimal while shifting services (non-taxed) offshore. For example:
- Before: Final assembly in Vietnam = full tariff
- After: Final assembly in U.S., but CAD modeling, testing, and marketing executed offshore = reduced import duties
Key cost-saving areas:
- Pre-manufacturing activities: Design, digital modeling, animation, campaign planning
- Post-manufacturing: Marketing, distribution support, technical support
3. Build a Vietnam Strategy: Digital Staffing Meets Export Planning
Vietnam isn’t just a factory floor—it’s a service economy growing in sophistication. Use Vietnam for more than just cost reduction. Use it for strategic diversification of your talent and sales base. Here’s how to develop a two-pronged Vietnam strategy:
- Offshore Services: Tap into Vietnam’s talent for:
- Product design and animation
- App development and QA
- Digital marketing and content creation
- Product design and animation
- Export Rebalancing: Consider using Vietnam as a launching point for exporting to other markets. While tariffs on Vietnamese goods may affect the U.S., they’re not necessarily mirrored in the EU, UK, or Japan—Vietnam has active trade agreements with all three.
4. Leverage FTAs: Tap Vietnam’s Global Trade Network
Vietnam is a signatory to 16 free trade agreements, including:
- CPTPP (with Canada, Japan, Australia, etc.)
- EVFTA (European Union)
- RCEP (Regional Comprehensive Economic Partnership, including China and ASEAN)
- UKVFTA (United Kingdom)
What this means for you:
- Products assembled or services delivered from Vietnam may benefit from zero or reduced duties in many key markets outside the U.S.
- Digital products and remote services are largely non-taxable across borders, allowing smoother operations and easier scaling.
5. Stay Compliant: Avoid Transshipment Risks
A common temptation is to reroute Chinese-made goods through Vietnam to dodge tariffs. This is illegal under U.S. trade law and heavily scrutinized. Compliance isn’t just about avoiding fines—it’s about future-proofing your brand and partnerships.
To stay compliant:
- Ensure that origin labeling is accurate and matches actual country of production.
- Work with Vietnamese partners that are certified and follow best practices for traceability.
- Keep customs documentation transparent and aligned with U.S. and WTO guidelines.
Final Word: Trade War? Or Service Opportunity?
Yes, the 2025 tariffs are serious — but they’re not a dead end. They’re a signal to evolve, not to panic.
President Trump is back in office, and his agenda is clear: reindustrialize America. Tariffs are part of that long-term strategy. But rebuilding domestic manufacturing across every sector is a massive, multi-decade effort. Many industries — especially those with deeply established supply chains in Asia — simply can’t be replicated overnight in the U.S.
That’s why we can expect the current tariff lists to be adjusted, refined, and rebalanced over time. It’s unlikely that every category will remain taxed at full force. History shows that bold opening moves often give way to targeted negotiations, exemptions, and practical recalibrations.
But even if tariffs remain in place for many goods, now is the ideal moment to rethink your global operations.
The smartest strategy? Shift your cost structure from taxed imports to untaxed, high-impact services.
Design, development, QA, marketing, and customer support — these services are not subject to tariffs. And they represent some of the most valuable, scalable parts of your business. By pivoting toward Vietnam’s deep pool of digital talent, you can reduce exposure to trade risks, protect your margins, and increase your operational agility.
Tariffs may hit goods. But Vietnam’s service sector remains wide open — and globally competitive.
So no, this isn’t a crisis. It’s a call to adapt.
Don’t pay tariffs when you can pay talent. Don’t fight the shift — lead it. Vietnam is ready. Are you?
Contact Remote Resources today!
