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A recent survey conducted by the American Chamber of Commerce in Vietnam highlights the growing concerns of American manufacturers over customs duty recently imposed by the Trump administration. The results reveal that many companies would be forced to carry out layoffs massive if these protectionist measures were to be strengthened. This worrying situation raises questions about the future of the manufacturing industry in Vietnam, a key country in the global supply chain, and highlights the challenges facing American economic partners in a constantly evolving trade context.
A recent survey carried out by the American Chamber of Commerce in Vietnam indicates that many U.S. manufacturers are considering imminent layoffs due to customs duties imposed by the Trump administration. This situation raises serious concerns among businesses, particularly in a country that depends heavily on exports. The aim of this article is to explore the ramifications of this trade policy on the Vietnamese economy, with a focus on the challenges faced by manufacturers.
A revealing investigation
Between February 4 and 11, an investigation conducted by AmCham revealed that nearly two thirds of manufacturers surveyed said they could be forced to make layoffs if the additional tariffs were actually implemented. This survey affected more than 100 members of AmCham Vietnam, including several large multinationals such as Intel And Nike.
According to the survey, the climate has deteriorated considerably since Trump introduced tariffs of 25% on steel and aluminum, as well as potential additional duties on technology and pharmaceutical products. The general feeling among businesses is that these customs could seriously disrupt their operations.
Impact on Vietnamese industry
In Vietnam, more than 60% foreign investments of $500 billion are concentrated in the manufacturing sector. These investments were very influenced by the trade policy of the Trump administration, particularly after the imposition of tariffs in 2018 on Chinese products, which led several companies to relocate their production to Vietnam.
However, with the new tariff threats, the mood among investors has changed. Many analysts believe that Vietnam could become the target of new tariffs due to its trade surplus with the United States. Vietnamese companies, especially those that are subcontractors of brands like Nike And Adidas, are particularly vulnerable to fluctuations in American policies.
Growing concerns among manufacturers
The AmCham survey also reveals that nearly 81% of respondents are concerned about the potential impact of new tariffs, a figure that reaches 92% among manufacturers. This concern is justified, as increased costs due to tariffs risk disrupting supply chains and forcing companies to review their operational strategies.
In this context, approximately 41% of respondents plan to diversify their operations outside the American market, which remains the main outlet for Vietnam. It should be noted that this reorientation towards other markets could constitute a saving strategy to avoid the impact of American tariff policies.
The impact on the technology industry
Along with the challenges faced by the manufacturing sector, Vietnam’s technology industry is also facing increasing uncertainties. Recently, reports indicate that most tech companies are planning to cut back on hiring due to economic pressures. In fact, almost 90% of information sector companies are considering hiring fewer staff, reflecting a general slowdown in industrial growth.
This situation is not only a concern for Vietnamese manufacturers. Japanese companies and other multinationals are also expressing fears about the negative effects of U.S. customs policies on their operations. Next to 90% of Japanese companies expect a deleterious impact following these new trade measures.
An uncertain future outlook
The Trump administration’s trade policies continue to create uncertainties that affect not only the U.S. market, but also Vietnam, a key country in the global supply chain. Businesses must navigate an ever-changing economic landscape, where the smallest decision can have major consequences.
To further this analysis of the economic challenges facing Vietnam, it is essential to consider the long-term implications of these changes in U.S. trade policy. Discover here an in-depth analysis of Vietnam’s economic challenges, as well as the economic risks associated with the Vietnamese market in this Coface sheet. For information on the concrete impact of the announced layoffs, check out this article which takes a close look at the case of Pouyuen Vietnam, a major subcontractor in the textile industry.
Finally, the dynamics of the Vietnamese technology industry in the face of these events is also to be followed, with detailed information available here.