The country’s electronics sector with export growth and reliance on Chinese imports could become a target under US trade shifts
[HANOI] Vietnam, an emerging manufacturing hub, faces both risks and opportunities as Donald Trump’s 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.
As one of South-east Asia’s most open economies with a burgeoning electronics manufacturing sector, Vietnam’s vulnerability to potential US trade restrictions is raising concerns, though analysts see continued prospects from China’s trade diversion and the West’s friend-shoring strategy.
“They (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,” Michael Kokalari, chief economist at VinaCapital, told The Business Times recently.