Vietnam, a burgeoning tech manufacturing hub, faces escalating pressure from the United States to reduce its reliance on Chinese components in electronics assembled within its borders. The US is targeting products like iPhones, Android phones, and VR headsets, demanding a shift away from Chinese-made parts before these goods are exported to the US market. This demand comes with a looming deadline of July 8, after which tariffs could reach 46% on Vietnamese exports if certain conditions are not met. The Biden administration, according to reports, is urging Vietnam to restructure its supply chains to lessen the inclusion of Chinese technology in products destined for the United States.
Major tech companies like Apple and Samsung rely on Vietnam for assembly, alongside contractors that build devices for Meta and Google. A substantial portion of the components used in these products originates from China. In 2024, China supplied approximately $44 billion worth of electronics and phone parts to Vietnam, representing 30% of China’s overall exports to the country. Concurrently, Vietnam exported $33 billion in tech products to the US, with both figures projected to increase in 2025, intensifying US scrutiny.
Vietnamese authorities have initiated discussions with local businesses, which have expressed willingness to adapt but cautioned that any rapid changes could destabilize operations. Supply chain experts suggest that while Vietnam lags behind China in supply chain sophistication, it is rapidly advancing, particularly in areas like electronics and textiles. This situation puts Vietnam in a delicate diplomatic position, as rapidly phasing out Chinese components could strain its relationship with Beijing, a major investor and geopolitical player in the region. Vietnamese negotiators reportedly view the US demands as challenging, and Washington is also pushing Hanoi to combat mislabeling of goods to prevent Chinese tech from evading tariffs. Ongoing negotiations between the US and Vietnam, including a possible high-level meeting between President Trump and Vietnam’s Communist Party chief, aim to resolve outstanding issues before the July 8 deadline, which could significantly affect Vietnam’s tech export access to the US market.
