Vietnamese factory workers and managers are deeply concerned about President Trump's proposed 46 percent tariff on imports from Vietnam, a measure temporarily paused for 90 days but still threatening to destabilize the economy. Many factories, operating on slim profit margins, are ramping up production to meet deadlines before the tariff's possible reinstatement, while others are freezing hiring or cutting jobs as American retailers cancel orders. The country's manufacturing growth, heavily reliant on U.S. demand, faces significant uncertainty, with potential tariff hikes pushing businesses to explore alternative markets in Europe and the Middle East. Vietnamese leaders are attempting to negotiate with the U.S. to reduce tariffs, but the pervasive uncertainty causes anxiety among manufacturers, who fear that prolonged indecision could lead customers to shift their supply chains. While Vietnam hopes to capitalize on China's tariff struggles, a failure to mitigate the 46 percent tariff could severely impact thousands of Vietnamese export companies.

Vietnam's economy, particularly its textile and garment industry, is heavily dependent on U.S. demand, contributing significantly to its recent growth. The proposed 46 percent tariff by the Trump administration threatens to disrupt this economic reliance, causing widespread fear among factory workers and managers.

Factory workers like Nguyen Thi Tuyet Hanh, who already struggle to make ends meet, face the daunting prospect of job cuts and reduced household income if the tariffs are reinstated. For families living on tight budgets, the potential economic impact is deeply unsettling.

The temporary 90-day pause on tariffs has not alleviated concerns, as the looming threat continues to hamper economic growth and prompt American retailers to cancel orders. This uncertainty forces factories to either increase production to meet looming deadlines or freeze hiring to mitigate potential losses.

Tran Nhu Tung, chairman of Thanh Cong, highlights the pressure on factories with thin profit margins to lower prices at the behest of American customers. To counteract potential losses, companies are looking to expand their market reach to other regions like the Middle East and Europe.

Negotiations between Vietnamese officials and the Trump administration are underway, with Vietnam offering to reduce tariffs on American imports to zero in hopes of reaching a favorable agreement. The outcome of these discussions is crucial for the future viability of Vietnam's manufacturing sector.

Mian Apparel, employing 12,000 workers, illustrates the pervasive anxiety among manufacturers who fear that the uncertain tariff situation may lead clients to redirect their supply chains. The company's management is under pressure to deliver goods swiftly before the tariff pause concludes.

Vietnam's potential to benefit from China's tariff woes is overshadowed by the risk of a continued high tariff rate, which could lead to significant economic repercussions for Vietnamese export businesses that largely rely on the U.S. market.