US President-elect Donald Trump has reiterated his commitment to revitalize domestic industry by imposing high tariffs on imported products, particularly those from China and Mexico. However, this strategy appears to be generating unexpected benefits for a third player: Vietnam.
An emerging destination for global manufacturing
Since the previous Trump administration, multinational companies such as Apple, Foxconn and Intel began moving their production to Vietnam. This move, driven by rising costs in China and trade tensions between Beijing and Washington, has transformed the Southeast Asian country into an emerging hub for advanced manufacturing. Recent investments include a $1.5 billion SpaceX plant and a Trump Organization luxury real estate project worth the same amount.
Vietnam has capitalized on this trend through a combination of strategic factors. Its geographic location, bordering China and with access to important trade routes, facilitates global logistics. In addition, the country has key free trade agreements, including one with the European Union, which sets it apart from competitors such as India.
The Vietnamese government has been proactive in implementing policies that encourage foreign investment. A recent example is the passage of regulations that allow companies to purchase green energy directly from private producers, a move welcomed by companies such as Samsung and Apple. This policy not only supports corporate climate goals, but also strengthens Vietnam‘s competitiveness in high-tech sectors.
The numbers back up this growth. Between 2017 and 2022, Vietnam experienced a significant increase in electronics manufacturing, while its trade deficit with the United States tripled since 2004. This reflects the growth of its exports, not only to the United States, but also to other international markets.
Vietnam, a key player in global chains
Although Trump has proposed tariffs of 20% to 100% on foreign-made goods, including Vietnamese goods, analysts point out that companies will continue to move their operations to Vietnam. Its political stability, developing infrastructure and business policies make it an attractive investment destination.
The country, which in past decades excelled in textile and footwear manufacturing, is now targeting higher-value sectors such as semiconductors, artificial intelligence and biotechnology. With an average economic growth of 6.2% per year, Vietnam is emerging as one of the big winners in the reshaping of global supply chains.
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