(Hanoi, 17th) Insiders say that in tariff negotiations with Vietnam, the United States is pressuring Hanoi to reduce the use of Chinese technology in equipment assembled domestically for export to the United States. This move aims to enhance Vietnam's industrial capacity and accelerate the decoupling of high technology between the United States and China.
Technology giants such as American company Apple and Korean company Samsung Electronics have large manufacturing plants in Vietnam. These companies typically rely on components made in China. Meta, the parent company of Facebook, and Google also have contractors in Vietnam that produce products such as headsets and smartphones.
The Trump administration plans to impose a 46% tariff on Vietnam, expected to take effect on July 9th. Hanoi is intensifying negotiations with Washington, hoping to reach a trade agreement. According to insiders cited by Reuters on Monday (June 16th), the United States has asked Vietnam to reduce the use of Chinese high technology to restructure the supply chain, thereby reducing the U.S.'s dependence on Chinese components.
The Vietnamese government has organized talks with local enterprises to boost the supply of domestic parts; while enterprises have expressed willingness to cooperate, they emphasize the need for time and technical support.
Insiders say the ultimate goal of the U.S. in making this request is to accelerate the decoupling of high technology between the U.S. and China, while enhancing Vietnam's industrial capacity.
Last year, China exported approximately $44 billion (about 1,853 billion ringgit) of technological products to Vietnam, including electronic components, computers, and mobile phones, accounting for 30% of China's total exports to Vietnam. In the same year, Vietnam exported $33 billion of technological products to the United States, accounting for 28% of Vietnam's total exports to the U.S.
The above insiders did not reveal whether the United States has set specific targets, such as setting an upper limit on the content of Chinese parts in goods made in Vietnam, or implementing different tariff rates based on the Chinese parts content of these goods.
Earlier insiders revealed that Vietnam considers the U.S. conditions harsh and difficult. Some industry executives believe that Vietnam has a long way to go to catch up with China's advanced supply chain at a lower cost.
Vietnam supply chain expert Qi Andene pointed out that Vietnam lags about 15 to 20 years behind China in terms of supply chain scale and sophistication, but is rapidly catching up, especially in key sectors such as textiles and electronics.
U.S.-Vietnam negotiation representatives held the third round of trade negotiations last week in Washington, which lasted four days. The Vietnam Ministry of Trade stated on Sunday (15th) that both sides have narrowed their differences in all areas of negotiation and are working towards reaching a mutually acceptable solution.
The statement also said that both sides will continue to discuss unresolved issues in the coming days, and U.S. Commerce Secretary Wilbur Ross and Vietnamese Minister of Industry and Trade Tran Tuan Anh will hold online talks.
According to insider reports cited by Bloomberg, the United States is concerned about China's attempt to circumvent tariffs by exporting products through Vietnam and has asked Hanoi to strengthen enforcement and remove non-tariff barriers. Vietnam has proposed removing all tariffs while strengthening trade enforcement and increasing the purchase of U.S. goods.
The report states that the U.S. and Vietnam are close to reaching a framework trade agreement. Insiders reveal that Vietnam hopes to keep the tariff rate between 20% and 25%.
The final details of this framework agreement are still being drafted to ensure it can gain approval from U.S. President Trump.
Technology giants such as American company Apple and Korean company Samsung Electronics have large manufacturing plants in Vietnam. These companies typically rely on components made in China. Meta, the parent company of Facebook, and Google also have contractors in Vietnam that produce products such as headsets and smartphones.
The Trump administration plans to impose a 46% tariff on Vietnam, expected to take effect on July 9th. Hanoi is intensifying negotiations with Washington, hoping to reach a trade agreement. According to insiders cited by Reuters on Monday (June 16th), the United States has asked Vietnam to reduce the use of Chinese high technology to restructure the supply chain, thereby reducing the U.S.'s dependence on Chinese components.
The Vietnamese government has organized talks with local enterprises to boost the supply of domestic parts; while enterprises have expressed willingness to cooperate, they emphasize the need for time and technical support.
Insiders say the ultimate goal of the U.S. in making this request is to accelerate the decoupling of high technology between the U.S. and China, while enhancing Vietnam's industrial capacity.
Last year, China exported approximately $44 billion (about 1,853 billion ringgit) of technological products to Vietnam, including electronic components, computers, and mobile phones, accounting for 30% of China's total exports to Vietnam. In the same year, Vietnam exported $33 billion of technological products to the United States, accounting for 28% of Vietnam's total exports to the U.S.
The above insiders did not reveal whether the United States has set specific targets, such as setting an upper limit on the content of Chinese parts in goods made in Vietnam, or implementing different tariff rates based on the Chinese parts content of these goods.
Earlier insiders revealed that Vietnam considers the U.S. conditions harsh and difficult. Some industry executives believe that Vietnam has a long way to go to catch up with China's advanced supply chain at a lower cost.
Vietnam supply chain expert Qi Andene pointed out that Vietnam lags about 15 to 20 years behind China in terms of supply chain scale and sophistication, but is rapidly catching up, especially in key sectors such as textiles and electronics.
U.S.-Vietnam negotiation representatives held the third round of trade negotiations last week in Washington, which lasted four days. The Vietnam Ministry of Trade stated on Sunday (15th) that both sides have narrowed their differences in all areas of negotiation and are working towards reaching a mutually acceptable solution.
The statement also said that both sides will continue to discuss unresolved issues in the coming days, and U.S. Commerce Secretary Wilbur Ross and Vietnamese Minister of Industry and Trade Tran Tuan Anh will hold online talks.
According to insider reports cited by Bloomberg, the United States is concerned about China's attempt to circumvent tariffs by exporting products through Vietnam and has asked Hanoi to strengthen enforcement and remove non-tariff barriers. Vietnam has proposed removing all tariffs while strengthening trade enforcement and increasing the purchase of U.S. goods.
The report states that the U.S. and Vietnam are close to reaching a framework trade agreement. Insiders reveal that Vietnam hopes to keep the tariff rate between 20% and 25%.
The final details of this framework agreement are still being drafted to ensure it can gain approval from U.S. President Trump.