Vietnam is accelerating plans to increase purchases of US goods, including aircraft, liquefied natural gas, and security equipment, as the country braces for potential tariff increases under a potential second Trump administration, Bloomberg reports.
The move is a proactive attempt to mitigate the economic impact of potential trade restrictions.
Deputy Minister of Foreign Affairs Do Hung Viet announced the increased purchasing plans at a Hanoi business summit, emphasizing Vietnam’s commitment to fostering harmonious trade relations with the United States. He highlighted the planned procurement of “big ticket” items, including security equipment and AI chips.
President-elect Donald Trump’s past threats of widespread tariffs represent a major uncertainty for Vietnam’s export-driven economy. President Luong Cuong recently warned APEC leaders of the dangers of escalating trade conflicts, stating that “trade wars lead only to recession, conflict and poverty.”
Trump’s recent pronouncements of potential 10% tariffs on Chinese goods and 25% tariffs on Mexican and Canadian products have heightened anxieties in Vietnam. With exports accounting for some 85% of its GDP and a significant trade surplus with the US (around $100 billion last year), Vietnam is considered a potential target for trade rebalancing measures.
John Goyer, the US Chamber of Commerce’s executive director for Southeast Asia, warned that the proposed tariffs are a “very real possibility,” urging both governments and businesses to prepare accordingly.
Prime Minister Pham Minh Chinh, also speaking at the US-Vietnam Business Summit, reiterated Vietnam’s need to maintain close ties with the US, its largest export market. He stressed the importance of translating the strong bilateral relationship into concrete actions and removing remaining trade obstacles. Chinh also repeated Vietnam’s request for the US to officially classify Vietnam as a market economy, a request previously denied by the Biden administration.
Vietnam’s electronics manufacturing sector, which experienced significant growth during the previous US-China trade war, is now exploring alternative export markets, products, and clients to diversify its reliance on the US market. The garment industry, in particular, is actively pursuing diversification strategies.
