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As Vietnam’s digital dreams face Trump tariff test, will diplomacy offer a lifeline?
Analysts say a deal with Washington on tariffs could unlock Vietnam’s ‘key player’ potential in Southeast Asia’s digital value chain
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Heavy tariffs imposed by the United States on Vietnamese goods threaten to hold back Hanoi’s digital economy ambitions, but analysts say Vietnam’s growing tech ecosystem and effective diplomacy with Washington could still position it as a “key player” in the region’s digital value chain.
The sweeping tariffs announced by US President Donald Trump last week included a 46 per cent duty on imports from Vietnam – the second-highest levy among the targeted countries – that is set to take effect on Wednesday.
Vietnamese leader To Lam has since held talks with Trump, offering to cut tariffs on American goods to zero in a bid to ease tensions. Trump welcomed the proposal and said he looked forward to further negotiations.
The Southeast Asian nation’s electronics sector, a major export engine, stands to bear the brunt of the new levies.
Apple suppliers such as Foxconn, which shifted operations to Vietnam during Trump’s previous trade war with China, are expected to face higher costs as a result of the tariffs, according to state-run Vietnam News.
Electronics, computers and components made up nearly 18 per cent of Vietnam’s total exports last year, much of it destined for the US. Any prolonged tariff friction could therefore have broad consequences for the Vietnamese economy.
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