Vietnam at the crossroads: Trump’s policies set to bring new risks and opportunities

[HANOI] Vietnam, an emerging manufacturing hub, faces both risks and opportunities as Donald Trump’s impending return to the White House stirs fears of renewed trade protectionism, amid a growing trade surplus with the US and rising Chinese investments seeking tariff relief.

Vietnam, as one of South-east Asia’s most open economies with a burgeoning electronics manufacturing sector, is vulnerable to potential US trade restrictions, and this is raising concerns, though analysts see continued prospects from China’s trade diversion and the West’s friend-shoring strategy.

Michael Kokalari, chief economist at VinaCapital, told The Business Times recently: “(The US) will probably be more strict on the content rules. That would be good for Vietnam because (the Chinese manufacturers) have to make more in Vietnam.”