Vietnam’s thriving tech manufacturing sector is facing mounting pressure from the United States. The US is demanding that Vietnam decrease its dependence on Chinese-made components in electronic devices assembled within the country, specifically targeting products such as iPhones, Android phones, and VR headsets before they are exported to the American market. The US has set a deadline of July 8, after which high tariffs, potentially reaching 46%, may be imposed on Vietnamese goods if specific conditions are not met. The core demand from Washington is for Vietnam to lessen its reliance on Chinese technology, protecting access to the US as its primary export market.
According to reports, the Biden administration is actively urging Vietnam to restructure its supply chains. The aim is to reduce the quantity of Chinese technology incorporated into products that are assembled in Vietnam but sold in the US, including iPhones, VR headsets, and smartphones. Vietnam serves as a significant assembly hub for Apple and Samsung, with various contractors also building devices for Meta and Google. Despite this, a large percentage of the components originate from China. In 2024, China exported approximately $44 billion worth of electronics and phone parts to Vietnam, comprising 30% of China’s overall exports to the country. Concurrently, Vietnam exported $33 billion in tech products to the US. With both these figures on the rise in 2025, the US is intensifying its scrutiny.
The Vietnamese trade ministry has already begun discussions with local businesses, which have expressed a readiness to modify suppliers, though they warn that these changes cannot be implemented instantly. Experts suggest that Vietnam is progressing rapidly in areas like electronics and textiles but still has a way to go to match China’s supply chain capabilities. This situation presents a diplomatic challenge for Vietnam, as a rapid phase-out of Chinese components could complicate its relationship with Beijing, a key investor and a major player in the region. Vietnamese negotiators are reportedly finding the US demands to be difficult, and Washington is also pressing Hanoi to address the issue of mislabeled goods to prevent Chinese technology from evading US tariffs. Negotiations are ongoing, including a potential high-level meeting, to address the unresolved issues before the July 8 deadline, which could significantly impact Vietnam’s tech export access to the US market.