Vietnam goes from potential FDI darling to trade target in Trump’s trade storm

[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.