501. Navigating Global Value Chains and Economics in 2025: US–Vietnam Relations in a Changing IndoPacific
- Author:
- Thanh Nha Nguyen
- Publication Date:
- 08-2025
- Content Type:
- Working Paper
- Institution:
- East-West Center
- Abstract:
- Vietnam has emerged as an indispensable link in Indo-Pacific manufacturing networks. The country’s strategic advantage lies in its ability to adapt to shifting policies while mitigating risks from trade frictions. To sustain these gains, Vietnam must invest strategically in long-term competitiveness by upgrading workforce skills, improving infrastructure, and climbing the value chain through enhanced design and innovation capabilities. Vietnam’s adaptability has made it a prime beneficiary of the ongoing realignment in global supply chains driven by US trade policy changes. Tariffs on Chinese goods and broader efforts to "de-risk" supply lines have prompted many manufacturers to expand operations in Vietnam, sharply boosting exports and investment. By 2023, Vietnam had vaulted from the 12th- to 7th-largest exporter to the United States, as US imports from Vietnam rose by nearly 35 percent year-on-year. High-profile firms, including Samsung, Apple contractors, and major textile producers, have accelerated investments in Vietnam, solidifying its role as a preferred “China+1” manufacturing base.
- Topic:
- Economics, Manufacturing, and Global Value Chains
- Political Geography:
- Vietnam, North America, United States of America, and Indo-Pacific