This follows the third round of US-Vietnam talks that ended last week. One of the sources said that Vietnam had been asked to “reduce its dependency on Chinese high-tech” and that will be part of the “restructuring of supply chains and would in turn reduce US dependency on Chinese components”.
Another source added that the end goal here is to hasten US decoupling from Chinese high-tech while increasing Vietnam’s own industrial capacity. For some context, Vietnam houses large manufacturing operations for the likes of Apple, Meta, and Google but often relies on components made in China.
All sources reaffirmed that while the US is pushing Vietnam to reduce its reliance on China, this particular area i.e. high-tech from China was a key priority. Besides that, the US also wants Vietnam to crack down harder on origin washing practices amid the higher tariffs we’re seeing.
As a reminder, Vietnam was slapped with an initial 46% tariffs in April and the deadline for negotiations remain until 8 July.
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