Cut shifts or ramp up output Vietnam s exporters face dilemma amid tariff chaos

HANOI - Some factory workers in Vietnam have been told to increase output of products for the U.S. market, while others have had their shifts cut to three per week as U.S. orders were postponed or cancelled, industry executives said.

The radically diverging strategies, largely the result of shifting U.S. orders, show the chaotic reaction of exporters in the Southeast Asian industrial hub, which was slapped by the Trump administration with 46% tariffs before most duties were paused until July.

Factories change their production plan and human operations too, dividing work shifts to Mon-Wed-Fri and Tue-Thu-Sat instead of working full time, as huge orders are on hold, said Calvin Nguyen, the head of Vietnamese logistics firm WeDo Forwarding.

He cited three companies producing garments, shoes and agricultural goods that changed their work plans because orders were postponed even after U.S. President Donald Trump paused reciprocal tariffs on April 9.

Two business surveys and another three industry sources confirmed cost-cutting measures by companies in Vietnam and foreign firms pausing of investments.

Vietnam is a major exporter of footwear and apparel to the United States - manufactured by dozens of suppliers to large multinationals, such as Nike, Adidas and Gap.

A survey of 183 European businesses in Vietnam conducted by the European chamber of commerce from April 4-9 found most were considering cuts in response to tariffs, including workforce reduction and downsizing operations.

POWERING DOWN

In the electronics sector, which represents the largest share of Vietnams multi-billion-dollar exports to the U.S., top investor Samsung Electronics briefly ramped up production before tariffs kicked in, two workers said, and is considering adjusting production.

South Koreas LG Electronics, a maker of home appliances, suspended production of refrigerators at its factory in northern Haiphong city, according to a survey conducted by local authorities and posted online