At a bustling garment factory in Hai Phong, Vietnam, the atmosphere is tense. Once thriving on exports to the U.S., the facility now grapples with uncertainty following President Donald Trump’s recent tariff threats. The proposed 46% tariffs on Vietnamese goods, though currently paused until July, have sent shockwaves through the nation’s export-driven economy.
Vietnam, having benefited from the U.S.-China trade tensions in the past, now finds itself in a precarious position. The country’s significant trade surplus with the U.S.—the fourth largest globally—has drawn scrutiny, with concerns about transshipment of Chinese goods through Vietnam exacerbating tensions. Major industries, including electronics, garments, and agriculture, are feeling the strain. Companies like Samsung and LG have adjusted their operations, with some scaling back production and investment plans.
Surveys indicate that a majority of U.S. manufacturers operating in Vietnam anticipate potential layoffs if tariffs are implemented. In response, Vietnamese firms are exploring strategies to mitigate risks, such as diversifying export markets, enhancing product traceability, and increasing automation. The government is also prioritizing investment in high-tech manufacturing and digital transformation to bolster resilience.
As the July deadline approaches, Vietnam’s manufacturing sector remains on edge, striving to adapt to the evolving trade landscape and safeguard its economic gains.
