Factory workers in Vietnam are facing sharply different workloads as shifting U.S. orders disrupt the country’s export sector. Some workers are being pushed to increase production, while others have seen their shifts cut to just three days a week, according to industry leaders.
The confusion stems from changing U.S. demand and the impact of a 46% tariff announced by the Trump administration. Though most of those duties were paused until July, many orders have still been delayed or canceled.
“Factories are adjusting schedules, splitting shifts to Monday-Wednesday-Friday and Tuesday-Thursday-Saturday instead of full-time work,” said Calvin Nguyen, head of logistics firm WeDo Forwarding. He noted that three companies in garments, footwear, and agriculture had changed operations due to postponed orders—despite the tariff pause announced on April 9.
Two business surveys and interviews with three industry sources revealed widespread cost-cutting in both local and foreign-run companies. Many foreign firms have also paused new investments in Vietnam.
Vietnam is a major supplier of apparel and footwear to the U.S., producing goods for global brands like Nike, Adidas, and Gap. A recent survey of 183 European businesses in Vietnam, conducted by the European Chamber of Commerce, showed that most were preparing to cut costs, reduce staff, or downsize in response to the tariffs.
Electronics Hit Hard
Vietnam’s electronics sector—the top contributor to its exports—is also being affected. Samsung Electronics briefly ramped up production before the tariffs were announced, but two workers said the company is now reviewing its output plans.
Meanwhile, LG Electronics stopped making refrigerators at its Haiphong factory, according to a local government survey that was later taken down from official channels. The company has also paused plans to expand microwave oven production at the same site.
An LG spokesperson said the company is monitoring the situation closely and adjusting production as needed.
The same survey showed Taiwanese electronics giant Pegatron could be the most affected by the tariffs in the Haiphong area. The company did not comment, but a person familiar with Pegatron’s operations said it is now increasing production, taking advantage of the temporary pause in tariffs.
“In the next three months, their U.S.-bound production will surge,” the person said. “Warehouses in the U.S. will be bursting with products in the months to come.”
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