BY FRANCESCO GUARASCIO
HANOI- Vietnam’s goods exports to the United States accounted for 30 percent of its gross domestic product last year, the highest share among US top trade partners, a Reuters review of public data shows, making the country highly vulnerable to reciprocal tariffs.
The Southeast Asian nation experienced a surge in foreign investment after the first Trump administration started a trade war with Beijing in 2018, as foreign multinationals moved factories from China to its southern neighbor to avoid US tariffs.
It hosts major operations of South Korea’s Samsung Electronics and Taiwan’s contract manufacturer Foxconn Apple chipmaker Intel and footwear and apparel giant Nike are among US corporations which bet on Vietnam as a production hub for goods often exported to the United States.
The massive inflow of manufacturing investment has turned the Communist-run nation into a major node in global supply chains and significantly boosted its economic ties with the United States. Vietnam now directs 29 percent of its exports to its former foe, according to Vietnamese customs data.
Last year, with goods exports worth $142.4 billion, Vietnam became the sixth largest exporter to the United States after Mexico, China, Canada, Germany and Japan, United Nations commodity trade statistics show.
Shipments to the US last year represented about 30 percent of Vietnam’s GDP of $468 billion, based on IMF’s estimates, the largest share for all US trading partners.
