VIETNAM'S EXPORT-DRIVEN ECONOMY FACES UNCERTAINTY AS US TARIFF THREAT LOOMS
HANOI, Vietnam — As the Trump administration's tariff plan continues to cast a shadow over global trade, Vietnam, one of the fastest-growing economies in Southeast Asia, is bracing for impact. The country, which has become a major manufacturing hub for international brands such as Nike, Apple, and Samsung, is highly vulnerable to the proposed tax hikes.
Over the past decade, Vietnam has experienced rapid growth, driven in part by its strategic location and favorable business environment, which have attracted significant foreign investment. The country's exports, including electronics, apparel, and furniture, have become increasingly important to the US market, with Vietnam emerging as the second-largest supplier of clothing and shoes to the US after China.
However, the US tariff plan, which aims to address trade deficits and perceived unfair trade practices, poses a significant threat to Vietnam's export-driven economy. According to experts, the proposed tariffs could lead to a decline in US imports of Vietnamese products, resulting in potential job losses and economic instability in the country.
The US has already lowered tariff rates to 10% on most countries, except China, but the ongoing trade tensions have sparked concerns about the potential for "rerouting" — a practice in which Chinese firms export products to the US through Vietnam to avoid higher tariffs. If proven, this could lead to countervailing measures against Vietnamese exporters, further exacerbating the situation.
As the US and Vietnam negotiate tariff rates, the stakes are high for both countries. The US is seeking to protect its domestic industries, while Vietnam is fighting to preserve its hard-won economic gains. With the country's exports to the US accounting for 30% of its gross domestic product, the outcome of these negotiations will have far-reaching consequences for the people of Vietnam, who have only recently begun to experience the benefits of economic growth and development.
