Vietnam: A Golden Opportunity for Investors in Trump’s Trade Era

Vietnam presents a fascinating mix of opportunities and challenges for foreign investors under the Trump administration in 2025, especially given its evolving economic landscape and the U.S.’s renewed focus on trade policies.

The country’s appeal stems from its rapid growth, strategic location, and role as a manufacturing hub—factors that have drawn significant foreign direct investment (FDI) in recent years. With the Trump administration prioritizing trade imbalances and pushing reciprocal tariffs, here’s a breakdown of what foreign investors might expect.

Related: How to register a foreign company in Vietnam

Vietnam’s economy is booming, with a GDP growth of 7.09% in 2024, reaching $476.3 billion, fueled by strong exports and FDI inflows. Last year, it attracted $39.4 billion in FDI, a 34.5% jump from the prior year, and the government aims to pull in $40–50 billion annually by 2026–2030. Key sectors like manufacturing (think electronics and apparel), tech (semiconductors), and green energy are hotspots. Companies like Samsung, Intel, and Apple have already sunk billions into Vietnam, shifting production from China to sidestep U.S. tariffs—a trend that started during Trump’s first term and could accelerate now. The Trump Organization itself is betting big, partnering with Kinhbac City to develop a $1.5 billion golf course and hotel project in Hung Yen province, signaling confidence in Vietnam’s luxury and tourism potential.

For foreign investors, Vietnam’s advantages are clear: a young, skilled workforce, competitive labor costs (garment workers earn $250 a month versus $700 in China), and a government eager to roll out incentives. The Ministry of Planning and Investment is finalizing a fund to lure high-tech projects—think AI, semiconductors, and R&D centers—with minimum investments starting at $235 million for some categories. Add to that Vietnam’s push for renewable energy (aiming for 30.9–39.2% of its energy mix by 2030) and its digital economy surging 19% to $30 billion in 2023, and you’ve got a compelling case for diversification beyond traditional manufacturing.

Photo: Olivier Ochanine

But the Trump administration’s trade stance casts a shadow. Vietnam’s trade surplus with the U.S. hit nearly $100 billion last year, making it America’s third-largest trade partner after China and Mexico. Trump’s fixation on reducing deficits could lead to tariffs—potentially 20% on all imports, with harsher measures if Vietnam’s seen as a conduit for Chinese goods dodging U.S. levies. This “tariff-jumping” risk is real: as Chinese firms flood Vietnam with investment to reroute exports, Hanoi’s vulnerability spikes. Analysts note that while Vietnam benefits from U.S.-China tensions, it could become “collateral damage” if Trump’s protectionism broadens. Eric Trump’s quip about Vietnam “ripping off” the U.S. hints at this tension.

On the flip side, Trump’s personal stake in Vietnam and his administration’s likely push to diversify supply chains away from China could work in investors’ favor. Vietnam’s role in reducing U.S. reliance on Chinese low-cost goods—especially in tech and electronics—might earn it some leeway. Plus, deregulation and tax cuts (like dropping the corporate rate to 15%) could funnel more U.S. investment into Vietnam via third countries like Singapore, which already leads FDI there.
The catch? Vietnam’s regulatory environment isn’t perfect—bureaucratic hurdles, weak intellectual property protections, and skill gaps in high-tech fields could trip up newcomers. The government’s proactive, though—streamlining processes, offering tax breaks, and eyeing a bilateral investment agreement with the U.S. to boost American FDI, which lags at 13th place despite big names like Nike and Intel.

For foreign investors, the play is strategic: tap into Vietnam’s growth in manufacturing, tech, and green sectors while hedging against tariff risks. Diversifying markets beyond the U.S.—think Europe or Africa—could offset exposure. It’s a high-stakes game, but Vietnam’s momentum and the Trump administration’s unpredictable pragmatism could make it a winning bet for those who navigate it smartly. Thoughts on where you’d place your chips?

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Source: Vietnam Insider