U.S. Pressures Vietnam to Reduce Reliance on Chinese Technology in Exported Electronics

Vietnam Insider – The United States is urging Vietnam to scale back its use of Chinese technology in electronic goods assembled domestically and exported to the U.S., according to sources familiar with ongoing trade discussions.

The push comes as part of broader tariff negotiations, with Washington emphasizing the need for Vietnam to reduce dependence on Chinese components in high-tech manufacturing. Vietnam has become a key production hub for global tech giants including Apple, Samsung, Meta, and Google—many of which source critical parts from China.

Related: Vietnam, U.S. Make Progress in Trade Talks but Key Issues Remain

Sources say the U.S. sees this shift as a strategic move to accelerate its own decoupling from Chinese supply chains, while simultaneously boosting Vietnam’s industrial capacity. Products such as virtual reality headsets and smartphones assembled in Vietnam but reliant on Chinese inputs are seen as a particular concern.

Vietnamese authorities have begun engaging local manufacturers to encourage the use of domestically produced components. While companies have expressed willingness to adapt, many warn that rapid changes would disrupt current operations without significant technological and logistical support.

Trade tensions have risen amid a looming July 8 deadline for new U.S. tariffs, with rates reportedly as high as 46% if no agreement is reached. Vietnam’s Ministry of Trade confirmed that a third round of negotiations in Washington recently concluded with some progress, though key issues remain unresolved.

In parallel, the U.S. has also asked Vietnam to take stronger action against the mislabeling of Chinese-made goods as “Made in Vietnam” to avoid higher U.S. duties—a practice Hanoi is reportedly addressing.

China remains Vietnam’s largest source of technology imports, accounting for roughly $44 billion last year. At the same time, the U.S. is Vietnam’s top export destination for tech products, totaling $33 billion in 2024. Both figures are continuing to rise.

Vietnamese negotiators are said to view Washington’s demands as “tough,” balancing pressures from both geopolitical allies and regional partners. The situation adds complexity to Vietnam’s delicate relationship with China—both an important investor and a source of strategic friction.

Vietnam’s Communist Party chief, To Lam, is expected to meet U.S. President Donald Trump in Washington later this month, though no official date has been confirmed.

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Source: Vietnam Insider