The US is pressuring Vietnam in tariff discussions to minimise the use of Chinese technology in products built in the nation before being shipped to the US, according to three sources briefed on the situation. Vietnam is home to huge manufacturing facilities for big companies like Apple and Samsung, which frequently rely on components manufactured in China.
Meta and Google also have contractors in Vietnam that manufacture products like virtual reality headsets and smartphones. According to one individual familiar with the negotiations, the Southeast Asian country has been holding meetings with local businesses to increase the supply of Vietnamese components, with firms expressing a desire to collaborate but warning that time and technology would be required.
The Trump administration has threatened Vietnam with 46% tariffs, which could severely limit access for Vietnamese-made goods to their largest market and upend the Communist-run country’s export-oriented development model. According to one source acquainted with the conversations, Vietnam has been advised “to reduce its dependency on Chinese high-tech.” “That is part of the restructuring of supply chains and would in turn reduce US dependency on Chinese components,” the individual claimed.
The ultimate goal is to accelerate the US’s decoupling from Chinese high-tech while growing Vietnam’s industrial capacity, a second person said, citing virtual reality gadgets as an example of Vietnam-assembled items that are overly reliant on Chinese technology, reported Reuters.
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