Vietnam goes from potential FDI darling to trade target in Trump’s trade storm
Its rise as a China+1 hub is hampered, as stalled US talks threaten to dampen its investment momentum and supply-chain clout
Add BT as a preferred source
[HO CHI MINH CITY] Vietnam’s dream of becoming a foreign direct investment (FDI) darling is at risk of unravelling, with the US having slapped a 46 per cent reciprocal levy on the country. It is the steepest among the Asean-6 countries and a move that narrows the South-east Asian country’s cost advantage over China.
Caught between escalating US trade pressure and rising regional competition, Hanoi has just days – until Apr 9 (Wednesday), to be exact – to negotiate a reprieve on the tariff that it deems “unfair” and not reflective of its ongoing goodwill in addressing the trade imbalance.
If Vietnam fails to win concessions, it could lose its edge as the go-to China+1 destination, threatening to derail years of supply-chain gains and its status as South-east Asia’s FDI hotspot.
TRENDING NOW
CSE Global independent director quits after clashes with chairman Eugene Lai over board refresh
Cat A COE rate exceeds Cat B for third time in 4 months; premiums largely down
What’s wrong with Orchard Road? Experts weigh in on the street’s cachet and its future
Singapore workers experiencing rising anxiety; signs of fallout from pressure to use AI
