Inside the Vietnamese factory preparing for the worst since Trump's tariff threat

On the outskirts of Ho Chi Minh City, factory workers at Dony Garment have been working overtime for weeks.

Ever since Donald Trump announced a whopping 46% trade tariff on Vietnam, they've been preparing for the worst. They're rushing through orders to clients in three separate states in America.

Sewing machines buzz with the sound of frantic efforts to do whatever they can before Mr Trump's big decision day. He may have put his "Liberation Day" tariffs on pause for 90 days, but no one in this factory is taking anything for granted.

Workers like Do Thi Anh are feeling the pressure. "I have two children to raise.

If the tariffs are too high, the US will buy fewer things. I'll earn less money and I won't be able to support my children either.

Luckily here our boss has a good vision," she tells me. That vision was crafted back in 2021.

When COVID struck, they started to look at diversifying their market. Previously they used to export 40% of their garments to America.

Now it's closer to 20%. The cheery-looking owner of the firm, Pham Quang Anh, tells me with a resilient smile: "We see it as dangerous to depend on one or two markets.

So, we had to lose profit and spend on marketing for other markets." That foresight could pay off in the months to come. But others are in a far more vulnerable state.

Some of Mr Pham's colleagues in the industry export all their garments to America. If the 46% tariff is enforced, it could destroy their businesses.

Read more from Sky News:The world and America have changed irreversibly under TrumpTrump's first 100 days in 100 wordsHow Trump's immigration crackdown has changed lives Doubts US will start making what Vietnam delivers Down by the Saigon River, young couples watch on as sunset falls between the glimmering skyscrapers that stand as a testament to Vietnam's miracle growth. Cuong, an affluent-looking man who works in finance, questions the logic and likelihood that America will start making what Vietnam has spent years developing the labour, skills and supply chains to reliably deliver.

"The United States' GDP is so high. It's the largest in the world right now.

What's the point in trying to get jobs from developing countries like Vietnam and other Asian nations? It's unnecessary," he tells me. But the Trump administration claims China is using Vietnam to illegally circumvent tariffs, putting "Made in Vietnam" labels on Chinese products.

There's no easy way to assess that claim. But market watchers believe Vietnam does need to signal its willingness to crack down on so-called "trans-shipments" if it wants to cut a deal with Washington.

???? Follow Trump100 on your podcast app ???? Vietnam can't afford to alienate China The US may also demand a major cutback in Chinese manufacturing in Vietnam. That will be a much harder deal to strike.

Vietnam can't afford to alienate its big brother. Luke Treloar, head of strategy at KPMG in Vietnam, is however cautiously optimistic.

"If Vietnam goes into these trade talks saying we will be a reliable manufacturer of the core products you need and the core products America wants to sell, the outcome could be good," he says. But the key question is just how much influence China will have on Vietnamese negotiators.

Anything above 10-20% tariffs would be intensively challenging This moment is a huge test of Vietnam's resilience. Anything like 46% tariffs would be ruinous.

Analysts say 10-20% would be survivable. Anything above, intensely challenging.

But this looming threat is also an opportunity for Vietnam to negotiate and grow. Not, though, without some very testing concessions..