Vietnam’s uneven industrialisation experience reveals the limits of a pro-international trade and pro-FDI strategy, says academic Guanie Lim. To move beyond the role of assembler and connector, it could adopt some of China’s approaches.

In response to changes in US tariff policy and global trade instabilities, Vietnamese businesses are making every effort to expand into new markets, bolster exports and stay resilient in the face of global economic fluctuations.

With export turnover reaching US$389 million (a 103 per cent increase) in the first four months of 2025, China and Hong Kong have become the largest shrimp markets for Vietnam.

In the context of global economic fluctuations, especially the US imposing high tariffs on imported goods from a number of countries, international trade activities are facing many challenges.

Global trade in 2024 remains a complex landscape characterized by geopolitical tensions, inflationary pressures, and rising protectionism. In this volatile environment, Vietnam’s agricultural sector is a crucial pillar of economic stability.

In the coming time, Vietnam should enhance public investment disbursement, promoting science and technology, innovation, and digital transformation, especially in the current context, while also boosting exports and expanding markets, improving social welfare, and proactively responding to climate change, storms, and floods.

Trump’s animosity towards China isn’t going to disappear, and his past actions do not bode well for a quick resolution

On April 2, 2025, President Trump signed an Executive Order imposing reciprocal tariffs on goods imported into the US from all countries and customs territories. Under this Order, Vietnam is among the group of countries subject to the highest specific reciprocal tariff rate (up to 46%).

The European Union (EU) remains a key market for Vietnam’s agricultural and aquacultural exports, particularly processed food products. However, many businesses remain hesitant, as the EU is regarded as a highly challenging market to penetrate.

To protect the interests of Vietnamese export businesses, authorities have advised associations and exporters to thoroughly study the updated US trade defence regulations before exporting goods there.