The threat of tariff rates in increasing imports from the United States could hinder the economic trajectory of countries such as Vietnam.
Foreign direct investment in Vietnam has increased in recent years as companies seek ways to manage the risks of the mood of production in China. Vietnam has resorted to an approach to -go $ 18.5 billion in net investment abroad, according to the World Bank records that date back to 1970.
The “reciprocal” tariff rate of 46% of President Donald Trump in the imported goods to the United States from Vietnam entered into force on April 9. Later that day, Trump restored rates rates in products from countries such as 10%Vietnam. Countries subject to higher rates have less than 90 days to negotiate better with the White House.
“Vietnam is highly vulnerable,” said Tuan Chu, associated program manager at the University of Rmit Vietnam.
Vietnam’s enhanced tariff fees are based, in part, on their commercial surplus, according to Cullen Hendrix, a senior member of the Peterson Institute of International Economics. The commercial surplus of Vietnam was approximately $ 123.5 billion in 2024 and $ 39.5 billion in 2018, according to the census desk.
A part of Vietnam’s growing exports to the US. Uu. It can be Chinese products that are redirected to evade higher rates rates. The evidence of this comes from the commercial data collected after 2018, as a commercial war between the United States and China intensified, according to a research work of the Harvard Business School.
Edmund Malesky, Professor of Political Science at the University of Duke and one of the authors of the Harvard document, estimates that 84% of Vietnam’s increase in manufacturing activity was an added value production. “But there is a narrower part, perhaps 16%, depending on how you measure it, which is the change of route, which became a group of the United States,” said Malesky.
Companies can alter their international supply chains if higher tariff fees in US imports.
“This is a son from a play or global WHOK-A-Mole,” said Hendrix.
Look at the video to learn how China can use countries like Vietnam as Side to trade with the US.