Laos Post

Thursday, Jul 31, 2025

Vietnam Confronts Rising Economic Pressures Amid Expanding U.S. Tariff Measures

Vietnam’s export-led economy, once buoyed by the U.S.-China trade war, now faces heightened risks as new U.S. trade actions target tariff circumvention and shift scrutiny toward Southeast Asia.
Vietnam is encountering increasing economic challenges as the United States intensifies efforts to prevent tariff evasion through third-party nations.

Once a key beneficiary of manufacturers relocating from China due to the U.S.-China trade dispute, Vietnam is now facing renewed scrutiny and potential disruptions to its export-driven growth model.

The U.S. Trade Representative’s office and Department of Commerce have expanded investigations into alleged tariff circumvention practices, focusing on Chinese goods routed through Southeast Asia, including Vietnam.

These inquiries cover sectors such as steel, solar panels, and electronics—industries that have seen significant foreign direct investment in Vietnam since 2018.

In 2023, the U.S. also imposed new anti-dumping and countervailing duties on certain Vietnamese steel products, citing evidence of origin masking.

Vietnam’s total exports reached approximately $354 billion in 2023, with the United States accounting for more than $100 billion of that figure.

Electronics, textiles, and footwear dominate Vietnam’s shipments, with companies like Samsung, Foxconn, and Nike maintaining extensive manufacturing operations in the country.

However, several high-profile factories are now subject to compliance audits and documentation reviews by U.S. authorities.

The Biden administration’s May 2024 announcement of increased tariffs on Chinese electric vehicles, batteries, and solar cells prompted additional scrutiny of Vietnamese imports in those categories.

Vietnamese customs and trade officials have reiterated efforts to enhance origin verification and prevent transshipment.

Authorities reported the implementation of digital customs platforms and strengthened documentation rules for high-risk sectors.

Vietnam’s Ministry of Industry and Trade confirmed it is working with affected industries to ensure compliance with U.S. and European Union trade requirements.

The country has also expanded its network of bilateral and multilateral trade agreements, including with the EU, the UK, and members of the CPTPP, to diversify export markets.

Foreign direct investment in Vietnam reached $36.6 billion in 2023, with registered projects primarily in electronics, semiconductors, and green energy.

However, several analysts have noted that future inflows may be influenced by the outcome of ongoing investigations and changes to global trade enforcement mechanisms.

As of early 2025, the United States has not announced blanket tariffs on Vietnamese goods.

However, U.S. Customs and Border Protection continues to monitor high-volume shipments for potential violations of the Uyghur Forced Labor Prevention Act and tariff circumvention statutes.

The Vietnamese government has pledged to continue cooperating with international trade authorities and enforcing intellectual property and labor standards as part of its economic policy framework.

In parallel, Vietnam has increased investments in domestic industrial policy, including incentives for high-tech manufacturing, digital infrastructure, and supply chain localization.

Recent measures introduced by the National Assembly include tax incentives for research and development centers and preferential treatment for companies relocating from geopolitically sensitive regions.

As geopolitical tensions persist and global trade enforcement evolves, Vietnam remains engaged in active diplomatic and economic dialogues with both Washington and Beijing.

Efforts to maintain trade stability have included high-level visits, working groups on supply chain resilience, and increased participation in international regulatory forums.
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