Understanding Tết and Its Impact on Business

Tết is more than just a one-day event—it involves a multi-week period of celebration, family reunions, and travel. In 2025, the official public holiday runs from January 27 to February 2, but many factories, suppliers, and shipping companies will close for several days before and after the holiday. This extended break can cause significant delays in production, shipping, and communication with suppliers.

Key Impact Areas:

• Factory Closures & Production Delays: Most factories in Vietnam will shut down for at least one week, with some closing earlier and reopening later than expected. Production timelines may be disrupted until mid-February, which can affect your order fulfillment.
• Shipping & Logistics Bottlenecks: With many factories rushing to finish orders before Tết, ports and shipping companies experience congestion. After the holiday, logistics companies often operate with reduced staff, further delaying shipments.
• Communication Slowdowns: As workers return to their hometowns and factories temporarily shut down, communication with suppliers and vendors can slow significantly, particularly in late January and the first week of February.

To minimize these disruptions, early preparation is key.

Challenges Faced by Buyers During Tết

1. Factory Closures and Production Delays Factory closures are inevitable, with workers taking time off to travel and celebrate with their families. This can result in delayed production, especially if you haven’t placed orders well in advance.

2. Shipping and Logistics Disruptions Ports can experience congestion as companies try to ship products before the holiday, and logistics services may be delayed as staffing levels drop during Tết.

3. Reduced Communication Due to the holiday, communication with suppliers will slow down, and it can be difficult to get timely responses from factories.

4. Post-Tết Recovery After Tết, many factories take time to ramp up production, and some workers may not return immediately. This means order fulfillment can take longer than usual, and factories may operate at reduced capacity for several weeks.

How to Prepare for Tết 2025 When Manufacturing in Vietnam

1. Place Orders Early To avoid production delays, it’s critical to place orders no later than early December 2024. This will allow factories time to complete your orders before the holiday shutdown. Make sure to clearly communicate your deadlines and get confirmation from suppliers on production timelines.

2. Build Buffer Inventory Stocking up on key products ahead of Tết is essential to mitigate delays. Aim to have 4–6 weeks’ worth of inventory on hand, especially for high-demand or hard-to-restock items. This will help keep your operations running smoothly during the holiday period.

3. Coordinate Shipping and Logistics Early Ensure that shipping services are arranged well in advance. Ports will be congested leading up to Tết, and after the holiday, there may be delays due to reduced staffing. If possible, consider alternative shipping routes to avoid heavily congested ports. Booking freight services early is essential to ensure timely delivery.

4. Maintain Open Communication with Suppliers Stay in close communication with your suppliers and manufacturers as Tết approaches. Discuss their holiday schedules and potential challenges they might face during the shutdown. Proactive communication will help you manage expectations and plan for any delays. Don’t forget to confirm shipping details and tracking information ahead of time.

5. Prepare for Post-Tết Delays Even after the holiday, factories may take time to fully resume operations. Be prepared for gradual recovery during the first few weeks of February. Adjust your delivery timelines to accommodate this recovery period and stay in contact with your suppliers to monitor production progress.

Strengthening Relationships with Suppliers During Tết

Tết is an important cultural event for Vietnamese workers, and showing respect for this can strengthen your relationship with your suppliers. Here’s how to build goodwill:

• Send Holiday Greetings or Small Gifts: Acknowledge the importance of the holiday by sending festive greetings or small gifts to your suppliers. This gesture fosters goodwill and demonstrates that you value your partnership.
• Respect Supplier Schedules: Avoid placing last-minute demands on your suppliers. Plan ahead to ensure you’re not pushing unrealistic expectations during a time when many are taking extended leave.
• Re-establish Connections Post-Tết: If possible, plan to visit your suppliers after the holiday. A visit shows your commitment to the relationship and provides an opportunity to assess how they’re handling post-Tết recovery.

Common Mistakes to Avoid During Tết

To avoid disruptions, here are some common mistakes to watch out for:

• Last-Minute Orders: Placing orders too close to the holiday can result in missed deadlines and production delays. Be sure to plan ahead and place orders at least a month in advance.
• Ignoring Logistics Planning: Underestimating the impact of Tết on logistics can lead to shipping delays. Make sure freight services are booked early to avoid missed shipping windows.
• Overlooking Post-Tết Delays: Factories often take time to recover after Tết, and many workers may not return right away. Adjust your expectations for order fulfillment and be patient during this period.
• Neglecting Supplier Communication: Communication with suppliers can be slower during Tết, and failing to stay in touch can result in missed updates or misunderstandings.

Conclusion: Plan Early for a Smooth Tết 2025

Tết 2025 presents unique challenges for businesses sourcing from Vietnam, but with proper planning, you can navigate these disruptions and keep your supply chain on track. By placing orders early, building buffer inventory, and coordinating logistics in advance, you can mitigate the risks posed by factory closures, shipping delays, and reduced communication.

If you’re looking for support in managing your supply chain during Tết 2025, working with a local Asia agent or sourcing partner can help. Experienced agents can assist in navigating local business practices, coordinating with suppliers, and ensuring that your orders are delivered on time.

By planning ahead, you can ensure that your business stays on track, and you can enjoy the holiday season without worrying about production delays or logistical bottlenecks.