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Article

25 Feb 2025

Author:
Reuters

Vietnam's US exports account for 30% of GDP, making it highly vulnerable to tariffs

Vietnam's goods exports to the United States accounted for 30% of its gross domestic product last year, the highest share among U.S. top trade partners, a Reuters review of public data shows, making the country highly vulnerable to reciprocal tariffs.

The Southeast Asian nation experienced a surge in foreign investment after the first Trump administration started a trade war with Beijing in 2018, as foreign multinationals moved factories from China to its southern neighbor to avoid U.S. tariffs.

It hosts major operations of South Korea's Samsung Electronics and Taiwan's contract manufacturer Foxconn. Apple, chipmaker Intel and footwear and apparel giant Nike are among U.S. corporations which in recent years bet on Vietnam as a production hub for goods often exported to the United States.

The massive inflow of manufacturing investment has turned the Communist-run nation into a major node in global supply chains and significantly boosted its economic ties with the United States. Vietnam now directs 29% of its exports to its former foe, according to Vietnamese customs data.

Last year, with goods exports worth $142.4 billion, Vietnam became the sixth largest exporter to the United States, after Mexico, China, Canada, Germany and Japan, United Nations commodity trade statistics show...

Vietnam's vulnerability is compounded by large trade imbalances that could make it stand out as U.S. officials study global reciprocal tariffs, which U.S. President Donald Trump has mandated to prepare by April...

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