Vietnam has agreed to expedite the repatriation of several dozen Vietnamese nationals detained in the U.S. and to handle future deportation requests more swiftly, following U.S. threats of trade tariffs and visa sanctions, according to a lawyer familiar with the matter.
This decision is part of a broader set of concessions Vietnam is considering to maintain stable trade relations with the U.S., its largest export market. Among America’s top trade partners, Vietnam is the most reliant on exports to the U.S., making potential tariffs a significant economic risk.
Faster Processing for U.S. Deportation Requests
As part of the new agreement, Vietnam has committed to processing U.S. deportation requests within 30 days—a significant acceleration compared to previous timelines, said Tin Thanh Nguyen, a U.S.-based immigration attorney.
Nguyen, who received details from a Vietnamese official, also stated that within the first month of the second Trump administration, Vietnam agreed to issue travel documents for 30 Vietnamese nationals currently in U.S. detention, clearing the way for their deportation.
“This is unusual,” Nguyen noted. “In the past, Vietnam often delayed or outright refused to issue these documents, making deportations difficult.”
When asked about Vietnam’s stance, Brian Hughes, spokesperson for the White House National Security Council, said:
“We expect all countries to take back their citizens who are in the U.S. illegally. Those that refuse will face consequences such as visa sanctions or tariffs.”
Vietnam’s foreign ministry has yet to respond to requests for comment. However, in a previous statement issued in February, a spokesperson reaffirmed that Vietnam would continue working closely with the U.S. on citizen repatriation in line with existing agreements.
Trade Risks Looming for Vietnam
Since the start of Trump’s second term, the U.S. has deported 37,660 people, primarily to Latin American countries. While the exact number of Vietnamese deportees remains unclear, some have reportedly been sent to Panama as part of deportation processing.
A Vietnamese official told Nguyen that the shift in Vietnam’s approach was triggered by warnings from U.S. authorities about potential trade tariffs and unspecified visa restrictions if Hanoi continued delaying deportations.
While Trump himself has not directly targeted Vietnam in his latest trade policies, his aides have raised concerns about Vietnam’s large trade surplus and trade barriers, putting the country at risk of future tariffs.
Vietnam is particularly vulnerable to any new global duties on semiconductors, as it is among the top exporters of chips to the U.S. Any restrictions on this sector could have serious economic consequences.
Who Is Affected?
Most of the 8,600 Vietnamese nationals currently facing deportation orders in the U.S. are individuals who originally entered the country as refugees before 1995, following the end of the Vietnam War.
While the latest agreement signals a willingness from Vietnam to comply with U.S. immigration policies, it also underscores the broader geopolitical and economic challenges shaping relations between the two countries.
Công ty TNHH T&G Global Việt Nam (“T&G Global”) và Công ty CP Dịch vụ Thương mại Tổng hợp WinCommerce (“WinCommerce”) ký kết biên bản ghi nhớ (MOU) nhằm thúc đẩy doanh số táo cao cấp ENVY™ thuộc sở hữu T&G Global, hướng đến mục tiêu tăng trưởng 50% trong hai năm tới tại thị trường Việt Nam.
Với hơn 8 năm hợp tác chiến lược, hai đơn vị ký kết biên bản ghi nhớ (MOU) tại TP. Hồ Chí Minh, dưới sự chứng kiến của Thủ tướng New Zealand, Ngài Christopher Luxon.
Thỏa thuận hợp tác này đánh dấu bước tiến quan trọng trong việc đưa sản phẩm táo cao cấp ENVY™ của T&G đến gần hơn với người tiêu dùng Việt Nam. Trong hai năm tới, sản lượng dự kiến sẽ tăng 50% nhờ vào việc mở rộng phân phối trên phần lớn hệ thống gần 4.000 cửa hàng của WinCommerce, bên cạnh việc đẩy mạnh thực hiện các chương trình khuyến mãi và trải nghiệm sản phẩm, giúp khách hàng dễ dàng tiếp cận tới táo ENVY™.
Quan hệ hợp tác giữa WinCommerce và T&G đặt trọng tâm vào cam kết mang sản phẩm táo cao cấp đến gần hơn với người tiêu dùng Việt
Ông Gareth Edgecombe, Tổng Giám đốc T&G Global, cho biết Việt Nam là thị trường tăng trưởng trọng điểm của T&G, và biên bản ghi nhớ này tiếp tục củng cố quan hệ hợp tác giữa công ty và WinCommerce. Trong năm năm qua, sản phẩm táo ENVY™ của T&G đã ghi nhận mức tăng trưởng mạnh mẽ về thị phần. Hiện nay, giữ 40% thị phần trong phân khúc, ENVY™ đã trở thành thương hiệu táo cao cấp dẫn đầu tại Việt Nam.”
Ông Gareth Edgecombe khẳng định: ”Là một phần trong chiến lược phát triển của ENVY™ tại châu Á, chúng tôi chú trọng mọi nỗ lực vào việc nhân rộng nhu cầu của người tiêu dùng Việt. Thông qua biên bản ghi nhớ này, mối quan hệ hợp tác giữa T&G Global và WinCommerce sẽ tiếp tục được củng cố, đồng thời nhấn mạnh cam kết chung của hai đơn vị trong việc mang đến cho nhiều khách hàng hơn cơ hội tiếp cận táo ENVY™ – dòng táo thơm ngon, chất lượng và luôn có mặt quanh năm.
“Câu chuyện của Táo ENVY™ thuộc T&G là một trong những thành công tiêu biểu của ngành nông nghiệp New Zealand. Được phát triển bởi các đối tác tại Viện Nghiên cứu Cây trồng và Thực phẩm New Zealand vào năm 2008, giống táo này hiện nay được chúng tôi cùng mạng lưới nông dân độc lập chăm sóc và trồng trọt tại New Zealand. Đặc biệt, bằng việc cấp phép cho các nông dân ở hơn 13 quốc gia, chúng tôi tự hào khi người tiêu dùng ở hơn 60 quốc gia có thể thưởng thức táo ENVY™ cao cấp mỗi ngày.
Với 70% sản lượng táo ENVY™ tại Việt Nam được trồng tại New Zealand, biên bản ghi nhớ này hứa hẹn sẽ đóng góp to lớn vào doanh thu xuất khẩu cho New Zealand và góp phần vào sự phát triển của nền kinh tế khu vực cũng như quốc gia.” ông Gareth Edgecombe cho biết thêm.
Bà Nguyễn Thị Phương, Tổng Giám đốc WinCommerce, chia sẻ: “Tại các siêu thị WinMart và cửa hàng WinMart+/WiN, chúng tôi luôn đặt việc cung cấp đa dạng các lựa chọn lên hàng đầu, đảm bảo người tiêu dùng Việt Nam có thể tiếp cận và trải nghiệm những sản phẩm chất lượng cao, dù là sản phẩm nội địa hay quốc tế.”
Khi đề cập đến những thành công thương mại và tiềm năng trong tương lai, bà Phương cũng khẳng định: “Táo ENVY™ ngày càng được ưa chuộng và lựa chọn bởi nhiều người tiêu dùng, điều này chứng tỏ tiềm năng to lớn của thị trường Việt Nam. Quan hệ hợp tác giữa WinCommerce và T&G thể hiện cam kết của chúng tôi trong việc mang đến cho khách hàng những trái táo chất lượng cao.”
Thủ tướng New Zealand, Ngài Christopher Luxon cùng đại diện các doanh nghiệp tại sự kiện Thương mại và Doanh nghiệp New Zealand
Thủ tướng New Zealand, Ngài Christopher Luxon, cho biết biên bản ghi nhớ này là một phần trọng yếu trong hành trình thúc đẩy tăng trưởng xuất khẩu: ”Chúng tôi đặt mục tiêu đầy tham vọng sẽ gấp đôi giá trị xuất khẩu trong vòng 10 năm tới, và ngành thực phẩm, sợi chất lượng cao dẫn đầu thế giới của New Zealand, cùng với sự đổi mới và năng suất là chìa khóa để chúng tôi chạm tay tới mục tiêu này. Theo đó, biên bản ghi nhớ giữa T&G và WinCommerce ra đời như một minh chứng cho hành trình chúng tôi hiện thực hóa mục tiêu đó.”
Danh mục sản phẩm táo của T&G đã có mặt tại Việt Nam hơn 15 năm, với văn phòng đại diện của công ty được thành lập tại TP. Hồ Chí Minh vào năm 2019. Hiện nay, táo của T&G chiếm 19% tổng lượng táo nhập khẩu từ New Zealand vào Việt Nam.
Vietnam is taking significant steps to attract foreign investment into its pharmaceutical industry by amending the 2016 Law on Pharmacy. The latest revision, outlined in Law No. 44/2024/QH15 (issued on November 21, 2024), will take effect on July 1, 2025, easing restrictions on foreign-invested enterprises (FIEs) and expanding their business opportunities in the country’s growing pharmaceutical market.
Greater Market Access for Foreign Investors
The amendment to Article 53 of the Law on Pharmacy grants FIEs broader rights to operate in Vietnam’s pharmaceutical sector. Under the revised regulations, FIEs can now:
Repurchase drugs and active pharmaceutical ingredients (APIs) produced in Vietnam through technology transfer agreements with their affiliated enterprises.
Import API supplies for drug manufacturing by local pharmaceutical companies that have technology transfer agreements with the same FIE.
Distribute imported, outsourced, or licensed-out drugs and APIs to wholesalers.
Import and distribute drugs intended for humanitarian aid and disease prevention/control programs.
Supply imported drugs and APIs for clinical trials sponsored by the FIE, ensuring direct delivery from warehouses to clinical trial facilities under technology transfer agreements.
Additionally, under the revised law, pharmaceutical companies will be allowed to import drugs without marketing authorization or import licenses if the products are exclusively used in government-approved clinical trials.
A Shift from Protectionism to Market Liberalization
Vietnam has historically maintained strict protectionist policies in its pharmaceutical sector, limiting the role of foreign investors. While the country extended import rights to foreign drug manufacturers in 2009—as part of its commitments to the World Trade Organization (WTO)—FIEs still faced substantial regulatory hurdles. To import pharmaceutical products, foreign firms had to establish wholly foreign-owned enterprises (WFOEs) or representative offices and navigate complex business arrangements between their local subsidiaries and parent companies.
A notable shift occurred in 2019 when the Ministry of Health (MoH), for the first time, granted an overseas drug manufacturer an import license, allowing them to introduce pharmaceutical products directly into the Vietnamese market. This decision was largely influenced by the European Union-Vietnam Free Trade Agreement (EVFTA), which pressured Vietnam to further open its pharmaceutical sector to foreign businesses.
However, despite these changes, foreign drug manufacturers remained restricted from engaging in direct drug distribution, as they were required to sell their products exclusively to local wholesalers or manufacturers.
Implications for Vietnam’s Pharmaceutical Industry
The upcoming amendments represent a major step toward liberalization, making Vietnam a more attractive destination for foreign pharmaceutical investment. By removing key restrictions, the government aims to:
Boost domestic drug development and manufacturing through increased foreign participation and technology transfer.
Enhance drug accessibility and supply chain efficiency by streamlining import and distribution processes.
Encourage clinical research and innovation by allowing direct importation of drugs for trials.
While Vietnam continues to balance economic openness with regulatory control, the new law signals a more investor-friendly approach, potentially transforming the country into a regional pharmaceutical hub in Southeast Asia.
The iconic floating markets of Vietnam’s Mekong Delta, once a vibrant symbol of the region’s unique culture, are steadily disappearing as economic development and modern infrastructure reshape local trade.
A Diminishing Legacy
As the first light of day spreads across Can Tho, the river hums with the sound of tour boats navigating its waters. In the distance, traditional wooden houseboats emerge from the mist, marking the presence of the once-thriving Cai Rang Floating Market.
For decades, floating markets like Cai Rang were the heart of commerce in southern Vietnam, dating back to the early 20th century when waterways served as the primary mode of trade and transportation. Before roads and bridges connected the delta’s provinces, boats laden with fresh produce, seafood, and household goods converged at these waterborne marketplaces.
However, over the past two decades, these markets have steadily declined—first gradually, then suddenly—mirroring Vietnam’s rapid economic transformation. Of the region’s ten major floating markets, only two remain active on a significant scale.
“When I first visited Cai Rang in 2011, it was much larger,” said Linh, a local tour guide. “Now it’s about a third of that size.”
At its peak in the 1990s, Cai Rang boasted over 400 boats. Today, that number has dwindled to around 200. Nearby Phong Dien Floating Market has all but vanished, with fewer than a dozen boats left, while Cai Be Market in Ben Tre province shut down completely in 2021.
A tour boat operator navigating the Can Tho River, a tributary of the Hau River, one of the main branches of the Mekong [Oliver Raw/Al Jazeera]
A Market in Decline
Despite its shrinking size, Cai Rang still presents a lively scene from afar. Boats loaded with pineapples, melons, and other produce bob along the water, while vendors call out to customers. But a closer look reveals a different story—tour boats now dominate the traffic, and the market’s commercial activity is fading.
Many sellers still live on their boats, their daily routines unfolding in full view. Families cook meals over small stoves, wash dishes in river water, and rest in hammocks alongside their children and pets. Yet beneath the market’s charm, a growing sense of uncertainty looms.
“Business is not good,” said Phuc, a pineapple seller who now relies mostly on tourists. On some days, she sells just ten pineapples at 20,000 Vietnamese dong ($0.78) each. “Only in high season do we make enough money. The rest of the time, we’re barely surviving.”
Two years ago, Phuc and her husband Thanh worked as wholesalers, selling yams they sourced from Long An province, near Ho Chi Minh City. Every week, they undertook a multi-day journey to restock their boat. But as roads and highways expanded, land-based trade became faster, cheaper, and more efficient, undercutting the need for river-based commerce.
“The only people still working here are those who can’t afford a van or a big car to transport goods,” Thanh explained.
Tuyen, a wholesaler selling onions, garlic, and sweet potatoes, echoed their concerns. “Ten years ago, I made good money. Now, it’s just enough to get by,” she said while preparing a breakfast of fish soup on her boat.
For many traders, the COVID-19 pandemic was a breaking point. Unable to sustain their businesses, many abandoned the water to seek work on land. But for those like Tuyen, the cost of renting a market stall—around 5 million Vietnamese dong ($195) per month—remains prohibitive.
“I’d prefer to work on land—it’s more comfortable and convenient,” she admitted. “But I simply don’t have the money.”
More Than Just Infrastructure Changes
While improved roads are often cited as the primary reason for the markets’ decline, other factors have also contributed.
Many smaller markets never recovered from pandemic closures, as health regulations accelerated a shift to land-based trade. Government-led flood prevention efforts—such as the construction of floodwalls along the Can Tho River—have also made docking and unloading goods more difficult, further discouraging vendors.
But perhaps the biggest threat comes from cultural shifts. As Vietnam modernizes, younger generations are moving away from traditional trades.
“My daughter doesn’t want to work here,” Phuc admitted. “She’d rather work for a company and invest in stocks. She doesn’t like this life.”
For many in Can Tho, floating markets are no longer essential. Supermarkets and shopping malls now dominate retail, leaving little reason for locals to visit Cai Rang.
“For me, it’s nothing special,” said a hotel receptionist, who has visited the market only once.
The Future of Cai Rang
Despite this, Cai Rang remains a crucial part of Can Tho’s tourism industry, which accounted for 6% of the city’s economy before the pandemic. In 2017, Can Tho welcomed 7.5 million visitors, though this number dropped to 5.9 million in 2023 due to fewer domestic flights and lingering post-pandemic effects.
If the floating market disappears, reviving tourism could become even more challenging.
Some, like Son Ca Huynh, a local tour operator, believe the market’s survival depends on reinventing it as a tourist attraction rather than a commercial hub. She points to Bangkok’s floating markets, where vendors sell a diverse array of goods, from souvenirs to street food.
“At Bangkok’s markets, they sell many different things,” she explained. “Here, we sell mostly fruit and vegetables.”
For such a transformation to work, she argues, authorities would need to invest in infrastructure, such as new piers and financial support for traders—though she doubts this will happen given the high costs.
Even if it did, she worries the market would lose its authenticity. “It wouldn’t be the same,” she said.
A Fading Tradition
By 8 a.m., trading at Cai Rang slows to a halt. Vendors retreat to their houseboats, seeking respite from the rising sun.
Linh, the tour guide, fears the clock is ticking. “Cai Rang may not last much longer,” she said. “When it’s gone, I’ll have to find another job.”
As Vietnam continues its march toward modernization, it seems inevitable that its floating markets will become little more than a memory—preserved in photographs, stories, and the nostalgia of those who once called them home.
Forget racing through security – airports are gaining recognition as travellers embrace a new era of pre-flight entertainment and perks before they even hit the skies. Notably, 51% of Vietnamese travellers are now considering vacation spots solely based on their airports*, and 79% seek airports with more unique experiences or facilities.
Gen Zs and Millennials are leading the shift, proving that the journey can be just as exciting as the destination. From tranquil sleep pods to luxurious spas, airports are transforming waiting into a memorable start of any trip. With travellers prioritizing airport experiences, Booking.com, one of the world’s leading digital travel platforms, suggests some airports that might turn your layover into a stayover.
Changi International Airport in Singapore
For the past decade, Singapore’s airport has been vying for the top spot of ‘World’s Best’ and it’s not hard to tell why. Set at the heart of it is the Jewel Rain Vortex, the world’s tallest indoor waterfall spanning seven storeys with a stunning display of water cascading down a glass-enclosed dome. Surrounded by the Shiseido Forest Valley, a verdant wonderland of over 900 trees and 60,000 shrubs, Jewel Changi transports travellers to a natural oasis even before their vacations begin.
Be sure to visit the Canopy Park at Jewel, where travellers can explore the park’s unique attractions, including 50-meter-long glass-bottomed walking trails, hedge maze, mirror maze made for adventurers of all ages. For a quick rest during your layover, the Changi Lounge offers a perfect spot to relax or catch a meeting for business travellers. If you’re staying overnight, consider YOTEL Singapore which offers modern rooms within Jewel, putting you right at the centre of Changi’s attractions. For a luxurious stay, Crowne Plaza Changi Airport, directly connected to the airport’s terminals, provides spacious rooms and a resort-style pool for a great spot to recharge before heading on your next adventure.
Danang International Airport in Danang, Vietnam
83% of Vietnamese travellers say a wider range of airport facilities would make their trips more exciting and stress-free, with Millennials and Gen Z particularly drawn to sleep pods (29% Millennials, 31% Gen Z) and spas (40% both Millennials and Gen Z), according to Booking.com’s Travel Predictions 2025.
Recognizing this trend of travellers prioritizing airport experiences, Danang International Airport has positioned itself as a leader in excellent pre-flight experience. From quiet zone sleep pods, a full-service spa, kids’ playgrounds at every international departure gate, 34 retail shops, large duty-free stores, 15 restaurants and cafés, with dedicated options for Korean and Chinese travellers to a prayer room for Muslim passengers, the airport offers travellers a seamless and enjoyable start to their journey.
Inspired by the cultural heritage of Da Nang and Hoi An, its design incorporates lantern motifs and ocean wave patterns, while seasonal decorations—such as a giant glowing pumpkin for Halloween and a dazzling Christmas display with a 10-meter tree and illuminated walkways—add to its unique charm.
With outstanding facilities and exceptional customer service, including the PAT (Passenger Assistance Team) to assist travellers, Danang International Airport was ranked 94th among the World’s Top 100 Airports in 2024 by Skytrax with a 5-star rating for its international terminal.
Incheon International Airport in Seoul, South Korea
Incheon International Airport gives travellers a taste of Korean culture even on a short layover. With attractions like an 18-hole golf course and an immersive K-Culture Street, travellers can dive into Korean heritage and enjoy a full day of entertainment before embarking on their flight. For those seeking relaxation, Incheon offers tranquil spaces including indoor gardens, a movie theatre and even a spa – sure to delight travellers eager to indulge in unique and relaxing experiences.
Some must-visits at the airport include the year-round skating rink where travellers can enjoy a quick glide before boarding (completely free!), and the innovative digital gym, a fun spot for interactive workouts. Just nearby, Paradise City offers a luxurious escape that’s far more than just a hotel. This opulent complex features an art gallery, entertainment complex and a diverse selection of restaurants catering to every culinary preference, making it an ideal place to stay for those looking to extend their experience beyond the airport.
Haneda Airport in Tokyo, Japan
Tokyo’s Haneda Airport is a blend of traditional Japanese aesthetics and modern convenience. Within, travellers can find a taste of old Tokyo along Edo-Koji Street, located at level 4 of terminal 3, where wooden architecture, traditional Japanese restaurants and charming souvenir shops evoke a nostalgic ambiance. It’s the perfect spot for a quick bite of authentic Japanese fare or to pick up unique keepsakes before continuing your journey.
Known for its well-designed lounges, don’t miss the opportunity to catch the breathtaking views of Mount Fuji and thoughtful amenities like personal sleep pods. If you’re looking for a longer stay, Haneda Excel Hotel Tokyu – connected directly to terminal 2 – provides convenient access and warm Japanese hospitality. Alternatively, just minutes away, Hotel JAL City Haneda offers comfortable accommodations along with a free airport shuttle, making it a great choice for a restful and hassle-free layover.
Hong Kong International Airport in Hong Kong
Hong Kong International Airport is an exciting destination in its own right, with an impressive range of facilities. Travellers can catch the latest films at the IMAX theatre or visit SkyCity and SkyPlaza located at terminals 1 and 2 respectively for diverse shopping, dining and entertainment options. For kids, the Wonder Eggshell offers interactive digital games and a unique space fitted with a playground where they can climb, slide and explore various curved net tunnels.
A staggering 83% of Vietnamese travellers expressed that having access to more diverse amenities at airports would make trips more exciting and stress-free, setting the stage for vacations that begin before takeoff.
Be sure to stop by the photo kiosk located at terminal 1 for fun snapshots or Intervals, an all-new bar located on the Sky Bridge, where travellers can sip on artisanal drinks with a spectacular view. For those staying overnight, Hong Kong SkyCity Marriott Hotel is located right next to the airport and features plush rooms, five dining options and an award-winning spa for unwinding between flights. For a unique stay, Auberge Discovery Bay offers a short shuttle ride to a scenic beachside retreat with spectacular views of the mountains and the ocean.
CONTACT DETAILS
For further information, contact the Booking.com Vietnam Press Office;
Huong.bui@edelman.com /+84 965642514
My.banh@edelman.com / +84 933588711
*Travel Predictions 2025 research commissioned by Booking.com and conducted among a sample of adults who plan to travel for business or leisure in the next 12-24 months. In total, 27,713 respondents across 33 countries and territories were polled (including 1,016 from Argentina, 1,002 from Australia, 502 from Austria, 1,003 from Belgium, 1002 from Brazil, 1,006 from Canada, 1,007 from China, 1,005 from Colombia, 501 from Croatia, 501 from Denmark, 1,011 from France, 1,009 from Germany, 1,004 from Hong Kong, 1,002 from India, 506 from Ireland, 501 from Israel, 1,014 from Italy, 1008 from Japan, 1,013 from Mexico, 1011 from The Netherlands, 1003 from New Zealand, 504 from Portugal, 508 from Singapore, 1004 from South Korea, 1,008 from Spain, 509 from Sweden, 500 from Switzerland, 507 from Taiwan, 1,009 from Thailand, 503 from the UAE, 1,012 from the UK, 1,006 from the US and 1,016 from Vietnam). Respondents completed an online survey in July-August 2024.
About Booking.com
Part of Booking Holdings Inc. (NASDAQ: BKNG), Booking.com’s mission is to make it easier for everyone to experience the world. By investing in the technology that helps take the friction out of travel, Booking.com’s marketplace seamlessly connects millions of travelers with memorable experiences every day. For more information, follow @bookingcom on social media or visit globalnews.booking.com.
While people often talk about the respiratory effects of air pollution, its impact on mental health is just as concerning. As a psychologist, RMIT Senior Lecturer Dr Gordon Ingram sees growing evidence of this invisible threat.
Right now, Hanoi and much of Northern Vietnam are entering a period of prolonged drizzle, thick humidity, and stagnant air – typical of February and March. This seasonal shift not only makes daily life uncomfortable but also worsens air pollution, as the heavy, moisture-laden atmosphere traps fine dust particles close to the ground.
Air pollution is harmful, not just because chemicals in the air are physically poisonous or linked to respiratory infections, but also because they can have direct psychological effects on our brain, mind, and behaviour.
That is why at this humid and polluted time of year, many people experience a noticeable dip in mood. Some develop symptoms of seasonal affective disorder (SAD), which is typically associated with winter in colder countries but can also be triggered by long periods of gloomy, cold, and sunless weather. Others report feeling more irritable, fatigued, or unfocused. Depression and anxiety tend to worsen in such conditions, and even those without a history of mental health issues may feel a general sense of unease.
Unravelling the reasons for these effects is a key research topic in environmental psychology.
This is a growing research area in the behavioural sciences, driven by concerns about climate change and sustainability, and by rapidly increasing urbanisation around the world. It is based on the idea that our minds are affected by the environment in which we live. So, if we want a healthier mindset, we need a healthier environment.
We all take over 20,000 breaths every day, and yoga and meditation techniques teach us that our breath very much affects our state of mind. Yet many people do not realise that air pollution has been linked to many psychological problems, including:
cognitive decline and brain fog (especially in older adults),
depression and anxiety,
stress and poor emotional wellbeing,
development of attention deficit hyperactivity disorder (ADHD) and other attention problems in children.
While most of these studies are very recent and much research still needs to be done, the connections are becoming clearer.
One key mechanism is thought to be generalised inflammation (an auto-immune response), which can affect the normal functioning of the HPA (hypothalamus-pituitary-adrenal) axis. As one of the main homeostatic systems in the body, the HPA axis is responsible for releasing hormones such as cortisol in response to stress, so its malfunctioning can have pervasive effects on body and brain.
On top of this, air pollution can even have direct neurological effects, especially during pregnancy and old age (some studies have linked it to dementia). So, it is particularly important for older people, pregnant women, and small children to have clean air supply at all times.
Talking of children, recently I have been studying the increase in attention problems such as ADHD in modern societies. People tend to think that new technology is causing problems with attention, particularly in children and young people. But did you know that ADHD has also been linked to air pollution? Just as toxic chemicals in the air can inflame our bodies, causing illnesses and infections, they can have inflammatory effects on the brain, giving rise to “brain fog” and other problems. If we want to clear our heads, we need to literally clear the air.
I believe my own research area of education and technology can play a role in addressing this problem. One idea I intend to develop is a mobile game that teaches children about air quality, incorporating real-time pollution data from sources like IQAir. The goal would be to teach kids responsible behaviour when the air is bad. There is so much potential for mobile technology to help with this.
Wearing masks outdoors is essential on days with high pollution. (Photo: Pexels)
On an individual level, each of us can take steps to reduce exposure, such as monitoring air quality, using air purifiers, and wearing masks on high-pollution days. But it is equally important for our mental health to get out and enjoy the fresh air when it is good – particularly in parks or other green spaces, where trees and water help clean the air naturally.
Real change, however, requires smart policies and enforcement. Cleaner energy, stricter emissions control, and better urban planning are essential. Shifts such as reducing construction dust and waste incineration, promoting electric vehicles, public transport, and recycling, and even inventing cleaner technology to handle cultural practices like votive paper burning, can make a meaningful difference.
In Hanoi, air pollution has reached levels where some residents are leaving the city entirely in search of cleaner air. That is a stark reminder that this is not just an inconvenience but can potentially become a public health crisis. If we truly want to protect both our bodies and minds, we need to take air pollution seriously.
Story: Dr Gordon Ingram, Senior Lecturer of Psychology, School of Science, Engineering and Technology, RMIT University Vietnam
Besides his career in selling wooden handicrafts, Le Thua Son also has excellent acting skills when playing the role of a fake police colonel, who specializes in receiving money to scam people, collect debts, etc.
On the afternoon of February 25, the People’s Court of Da Nang City held a first-instance trial of a defendant who forged a People’s Police ID card and a blue license plate (official vehicle) 80A to defraud 8 billion VND.
Received 2 billion VND to… run the case for a female tycoon who swindled 1,200 billion VND
The People’s Court sentenced Le Thua Son (50 years old, in Yen My commune, Nong Cong district, Thanh Hoa ) to 13 years in prison for fraud and appropriation of property; 3 years in prison for forging and using fake seals and documents of agencies and organizations. The total sentence is 16 years in prison.
According to the indictment, in April 2023, Le Thua Son came from Thanh Hoa to Da Nang City to trade in fine art wooden products and met Ms. PTH (45 years old, in Hai Chau District) and Ms. NTN (37 years old, in Son Tra District, both in Da Nang City).
With the intention of fraud from the beginning, Son ordered a fake People’s Police ID card, a blue license plate for the official car 80A, took pictures and sent them via Zalo to “brag” to Ms. N. about Son being a police colonel and close to many high-ranking leaders.
First instance trial of Son PHOTO: NGUYEN TU
In May 2023, Ms. PTH asked Son to help her sister, defendant Phung Thi Nghe, get bail (previously, “tycoon” Phung Thi Nghe was prosecuted and detained for fraud of 1,200 billion VND, Thanh Nien reported – PV).
Ms. H. also asked Son to collect the debt in Ho Chi Minh City. Son “bragged” that he would ask a high-ranking official to intervene, collect the debt, help Ms. H.’s brother get bail and file a petition to appeal his innocence.
Son offered a debt collection fee of 2 billion VND, and promised to resolve the matter within 2 months. Ms. H. agreed and paid the full amount between May 6 and 10, 2023.
However, Ms. H.’s younger sister, Phung Thi Nghe, was still sentenced to life in prison . By the end of July 2023, Son could not resolve the matter, so Ms. H. asked for money but did not pay. Son signed an IOU, promising to pay back the money by October 25, 2023, but then evaded the payment.
Son confessed to using the money to pay off his debt to gangsters and spending it all.
Cheating on lovers
During the time he knew and defrauded Ms. H., Son also had a relationship with Ms. NTN (Ms. H.’s friend). In June 2023, Ms. N. asked him to “run” to change the purpose of use to residential land for the agricultural land plot in Tam Thang Ward (Tam Ky City, Quang Nam ). Son offered a price of 1.3 billion VND and defrauded his lover.
At Son’s request, Ms. N. provided a copy of the land use rights certificate and 700 million VND. Son promised to convert it by the end of 2023, but Son continued to bring money to pay the debt.
Not only did Son not carry out the above mission, he also took advantage of his lover’s trust, fabricated a story that he had 1.4 hectares of rice fields in Truong Xuan commune (Nong Cong district, Thanh Hoa), and lured Ms. N. to give him money to level the land and change the purpose of use to residential land to divide into plots and sell.
Son continued to extort money from his lover by setting up a fake mine in Tuong Van commune (Nong Cong district) for Ms. N. to give him money to exploit. In just 2 months, from June to August 2023, Ms. N. gave Son 6 billion VND.
In court, Le Thua Son admitted his crimes. Son had his People’s Police ID cards and official blue license plate 80A forged on Facebook for 1.6 million VND to show that Son was a colonel of the Ministry of Public Security and to fool people.
Son has compensated Ms. H. 2 billion VND and his lover 5.7 billion VND. The victims also asked for a lighter sentence for the defendant.
Accordingly, the trends of safe tourism, return to nature, tourism to restore health … are forecasted to attract many foreign tourists in the coming time. This is the basis for giving solutions to achieve the target of 5 million international visitors in 2022 of Vietnam’s tourism industry.
Foreign tourists explore Cat Tien National Park. Photo: Nguyen Van Tam
The trend of outdoor travel, returning to nature
International tourists are increasingly looking to places that still retain their wild features to explore, experience from the mountains to the sea, enjoy the outdoor landscape, sunbathe, breathe the fresh air, immerse themselves in the natural space, rich in mental health values.
Safety factors in travel
Tourists will prioritize choosing destinations with low epidemic levels, good health systems, services and tourist attractions that ensure regulations on hygiene and safety for epidemic prevention. Besides, tourists will tend to choose private places, with a distance to limit contact with crowds.
Health recovery tourism trend
Rest, health care, relaxation, full recovery after infection will be among the needs of tourists. Tourists are also interested in hygiene, destination environment, accommodation facilities, restaurants… because these factors directly affect their health, partly affect the change in tourists’ decision to book services.
Trends in choosing the mode of transportation
International tourists tend to choose private means of transportation, by renting a private vehicle (motorcycle, car) to reduce contact load and ensure safety. In addition, fast-moving, fully-equipped vehicles such as airplanes, high-speed trains, etc. are also popular because of their short travel time, giving visitors more time to visit the destination.
Tourism associated with high technology
The pandemic has accelerated the application of technology in the tourism industry, visitors of all ages. This allows travel companies to interact with each other, companies to interact with tourists and vice versa in searching and exchanging information, applying technology and digital software in booking services, making purchases, sales, payments in electronic currencies, online banking quickly and conveniently.
New travel products
International visitors tend to choose new travel experiences. Photo: Tien Sa
Instead of choosing traditional tourism products, after the pandemic, many tourists turned to new tourism products to experience in person or online. New types of tourism can be mentioned such as spiritual cultivation tourism, local tourism (staycation), post-Covid-19 medical tourism, online tours anywhere in the world, tourism applying automation technology, smart tourism, resort tourism combined with health care, green tourism, experience tourism combined with skill training (Ed-ventures).
Flexibility during travel
The distance between regions, countries, languages, and restrictions caused by the epidemic makes many tourists often uncertain in choosing a travel destination. Therefore, the flexibility of tourism service providers is very important and is prioritized by tourists. That includes tour services, air tickets, accommodation rooms, sightseeing tickets, guides…
The Analects, also known as the Sayings of Confucius, is an ancient Chinese philosophical text composed of sayings and ideas attributed to Confucius.
Zigong who was born in Xunxian County, Henan Province, China, is regarded as the biggest contributor to the compilation of The Analects. He vowed to promote Confucianism, invested a large sum of money, gathered fellow disciples, and compiled the Master’s teachings into the Analects, which is truly a classic among classics, widely known and spread throughout the land.
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.
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?
Vietnam’s economy has become heavily reliant on exports to the United States, which last year made up 30% of its GDP—the highest proportion among America’s major trading partners—leaving it exposed to potential U.S. tariffs, according to a Reuters analysis of public data.
The Southeast Asian country saw a wave of foreign investment after the U.S.-China trade war kicked off in 2018 under the first Trump administration. Companies shifted production from China to Vietnam to dodge U.S. tariffs, turning it into a manufacturing hotspot. Big names like South Korea’s Samsung Electronics, Taiwan’s Foxconn, and American giants Apple, Intel, and Nike have set up shop there, producing goods largely destined for the U.S. market.
This influx of investment has transformed Vietnam into a key player in global supply chains and deepened its economic relationship with the United States, its former wartime enemy. Vietnamese customs data shows 29% of its exports now head to the U.S. In 2024, Vietnam exported $142.4 billion worth of goods to the U.S., making it the sixth-largest supplier after Mexico, China, Canada, Germany, and Japan, per U.N. trade stats.
Infrastructure is the big challenge for Vietnam, especially at its ports.
With a GDP of $468 billion (based on IMF figures), those U.S.-bound exports equaled roughly 30% of Vietnam’s economy—a bigger share than any other U.S. trading partner. Mexico comes close, with exports worth 27.6% of its GDP, and it’s already facing Trump’s threats of 25% tariffs. Meanwhile, China’s U.S. exports are just 2.5% of its GDP, and Japan’s are 3.7%.
Vietnam’s dependence leaves it at risk as the U.S., under President Donald Trump, gears up for reciprocal tariffs by April. Its massive trade surplus with the U.S.—the fourth largest after China, the EU, and Mexico, per U.S. data—could put it in the crosshairs. Add to that its higher tariffs compared to the U.S., VAT charges, non-trade barriers, and a spot on the U.S. currency manipulation watchlist, and experts like Sayaka Shiba from BMI say Vietnam checks all the boxes for tariff scrutiny.
The Communist-led nation’s export boom, paired with minimal imports from the U.S., only heightens its exposure as Washington eyes trade imbalances worldwide.
Vietnam has rolled out a comprehensive set of guidelines to evaluate the efficiency of foreign direct investment (FDI), aiming to gauge its true contribution to the nation’s progress.
Issued under Decision 315/QD-TTg by Prime Minister Pham Minh Chinh, the framework introduces 42 carefully crafted criteria, spanning economic, social, and environmental dimensions. These metrics spotlight how foreign capital shapes growth, innovation, and sustainability, while fostering stronger ties with local businesses.
A Holistic Approach
The new criteria offer a 360-degree view of FDI’s role in Vietnam’s development. At its core, the system assesses factors like investment scale, operational success, technological upgrades, tax revenue, and ripple effects across the economy. It’s designed to ensure foreign ventures don’t just land and profit—they must enrich Vietnam’s economic fabric, uplift communities, and tread lightly on the environment.
The 42 indicators break down into three key areas: 29 economic measures, eight social benchmarks, and five environmental standards. Together, they paint a detailed picture of how FDI aligns with Vietnam’s ambitions to become a modern, sustainable economy.
Economic Impact Under the Microscope
The economic metrics, grouped into six categories, form the backbone of the evaluation:
Scale and Socio-Economic Contribution (8 indicators): These measure FDI’s heft in driving growth, from capital inflows to its share in national development.
Operational Efficiency (10 indicators): This dives into how well foreign firms perform, spotlighting productivity and profitability.
State Budget Contributions (3 indicators): Focused on tax payments, these gauge how much FDI bolsters public coffers.
Spillover Effects (2 indicators): These track how foreign investment sparks growth in domestic industries.
Technological Progress (2 indicators): A look at how FDI brings cutting-edge tools and know-how to Vietnam.
Innovation Boost (4 indicators): These assess FDI’s role in fueling Vietnam’s creative and tech-driven future.
Together, these benchmarks aim to ensure foreign investment isn’t just a numbers game—it’s a catalyst for broader economic vitality.
Social Gains in Focus
Beyond dollars and cents, the framework prioritizes FDI’s human impact through eight social indicators, split into three clusters:
Jobs and Income (6 indicators): These highlight job creation and wage improvements for Vietnamese workers.
Gender Equality (1 indicator): A nod to fair employment practices across genders.
Legal Compliance (1 indicator): Ensuring foreign firms play by Vietnam’s rules.
This social lens underscores a key goal: foreign investment should lift living standards and strengthen the workforce, not just corporate bottom lines.
Green Standards Take Root
Rounding out the framework, five environmental indicators hold FDI accountable for its ecological footprint:
The share of foreign firms adopting energy-saving practices.
The percentage of facilities earning national or international ISO 14001 environmental management certification.
The growth rate of ISO 14001-certified sites.
The proportion of foreign businesses meeting Vietnam’s environmental laws.
The contribution of FDI-driven greenhouse gas emissions to the national total.
These measures signal Vietnam’s push for sustainability, ensuring foreign projects align with its green goals rather than burdening the planet.
A Strategic Move Forward
This new evaluation system reflects Vietnam’s evolving approach to FDI. With foreign investment pouring in—$25.35 billion in 2024 alone—the country isn’t content to be a passive player. By setting clear, multi-faceted standards, Hanoi aims to maximize the benefits of global capital while minimizing downsides. It’s a balancing act: welcoming investors with open arms, but on terms that serve Vietnam’s long-term vision.
As the nation outpaces regional peers like Malaysia and Thailand in export growth, these criteria could sharpen its competitive edge. They send a message to the world: Vietnam seeks quality investment—ventures that fuel innovation, empower people, and respect the environment. For foreign firms eyeing this dynamic market, the bar has been raised, and the rewards could be transformative.
In 2024, Vietnam emerged as a shining star among Southeast Asia’s manufacturing powerhouses, posting robust export growth that left regional peers Malaysia and Thailand in its wake.
While global supply chains continued to shift away from China, Vietnam seized the moment, capitalizing on its strategic advantages and export momentum—particularly to the United States. This standout performance not only underscores Vietnam’s growing clout in international trade but also signals its potential to redefine the region’s economic landscape.
Official data paints a compelling picture: Vietnam’s exports surged by 14.3% in 2024, reaching $405.53 billion, driven by strong demand for electronics, smartphones, clothing, and agricultural goods. In contrast, Malaysia and Thailand, while still vital players in the ASEAN bloc, struggled to match this pace. Malaysia’s export growth hovered around 12.7%, buoyed by commodities like palm oil and electronics, while Thailand’s lagged closer to 8%, hampered by weaker demand for automotive parts and rice. Vietnam’s edge, analysts say, lies in its ability to ride the wave of U.S.-bound shipments, a trend accelerated by trade tensions and diversification strategies reshaping global supply chains.
Sophie Dao, Senior Partner at Global Business Services LLC (GBS), an investment consulting firm based in Vietnam, sees this as a watershed moment. “Vietnam’s export growth in 2024 is a testament to its resilience and adaptability,” she remarks. “The country has positioned itself as a reliable hub for manufacturers looking to diversify beyond China, and the numbers reflect that trust. It’s an exciting time for businesses here—both local and foreign.” Dao’s optimism echoes the sentiment of many investors who view Vietnam as a cornerstone of the “China-plus-one” strategy, where companies maintain operations in China while expanding into nimbler, cost-effective markets like Vietnam.
What’s Driving Vietnam’s Success?
Several factors fueled Vietnam’s export boom last year. First, its proximity to China allowed manufacturers to tap into existing supply chains while avoiding the tariffs and restrictions increasingly imposed on Chinese goods. Second, a young, skilled workforce—58% of its 100 million people are under 35—kept labor costs competitive, drawing giants like Apple, which has poured over $15 billion into Vietnam over the past five years. Third, Vietnam’s 17 free trade agreements, including the Regional Comprehensive Economic Partnership (RCEP), opened doors to markets across Asia, Europe, and beyond.
The U.S. market, in particular, proved a goldmine. Vietnam’s trade surplus with the United States hit $104 billion in 2023, a figure likely dwarfed by 2024’s final tally as exports of tech gadgets and textiles soared. “The shift in U.S.-bound shipments has been a game-changer,” Dao notes. “Companies are rerouting production to Vietnam not just for cost savings, but for stability and access to a growing consumer base. It’s a win-win.”
Compare that to Malaysia and Thailand, where export growth, while solid, leaned heavily on traditional strengths. Malaysia’s electronics sector thrived, but its reliance on commodities left it vulnerable to price swings. Thailand, meanwhile, faced headwinds from a sluggish global recovery and domestic political uncertainties. Vietnam, by contrast, balanced its export portfolio—electronics led the charge, but farm produce like coffee and rice also shone—demonstrating a versatility that set it apart.
A Bright Spot in a Challenging Year
Vietnam’s 7.09% GDP growth in 2024, up from 5.05% in 2023, further cements its breakout status. Despite challenges like Typhoon Yagi, the strongest storm to hit Asia that year, the country’s economy roared ahead, propelled by $25.35 billion in foreign investment and an 8.4% rise in industrial output. Exports played a starring role, with 37 key items raking in over $1 billion each, accounting for 94.3% of total export value. Eight of those—think smartphones and solar panels—cleared the $10 billion mark, a feat that underscores Vietnam’s climb up the value chain.
For Dao, this resilience is no fluke. “Vietnam has turned adversity into opportunity,” she says. “The government’s proactive policies—streamlined regulations, infrastructure upgrades, and trade promotion—have created a fertile ground for growth. Investors are taking notice, and that’s only going to accelerate in 2025.”
Looking Ahead
Vietnam’s edge over Malaysia and Thailand isn’t just a 2024 headline—it’s a trend with legs. As U.S. President Donald Trump’s second term begins in January 2025, his tariff threats loom large, potentially pushing more firms to seek alternatives to China. Vietnam, already a proven player, stands ready to absorb that shift. The General Statistics Office projects trade turnover could hit $807.7 billion by year-end, a record that would solidify its lead in the region.
Still, challenges remain. Vietnam’s infrastructure, while improving, strains under rapid growth, and its trade surplus with the U.S. risks drawing scrutiny. Yet Dao remains bullish. “The momentum is undeniable,” she says. “Vietnam isn’t just outpacing its neighbors—it’s setting a new benchmark for what Southeast Asia can achieve. The world is watching, and we’re just getting started.”
In a region brimming with potential, Vietnam’s 2024 export surge marks it as the one to beat. Malaysia and Thailand remain formidable, but for now, Vietnam’s blend of agility, ambition, and opportunity has put it firmly ahead of the pack.
Vietnam is joining a growing list of nations pushing back against China’s steel juggernaut. Starting in early March, the Southeast Asian country will slap temporary anti-dumping tariffs on certain Chinese hot-rolled coil (HRC) imports, a move announced by its Ministry of Industry and Trade on February 21, 2025.
Following in the footsteps of South Korea, Brazil, and India, Vietnam aims to shield its domestic steel industry from the flood of cheap exports fueled by China’s construction slump. As the largest buyer of Chinese steel outside China itself, Vietnam’s decision marks a bold shift in its trade strategy—and a potential turning point for global steel markets.
A Global Steel Storm
China, the world’s top steel producer, unleashed a torrent of exports in 2024—over a billion tonnes, the most in nearly a decade—as its domestic property sector faltered. With construction demand drying up at home, Chinese mills turned outward, dumping steel onto global markets at cut-rate prices. Vietnam, a key destination, absorbed roughly 8 million tonnes of HRC alone last year, a volume that has squeezed local producers like Hoa Phat Group and Formosa Ha Tinh Steel Corp. The ripple effects are being felt worldwide, prompting U.S. President Donald Trump to float a sweeping 25% tariff on all U.S. imports and spurring other nations to erect their own trade barriers.
For Vietnam, the stakes are high. Hot-rolled coil, a versatile steel product used in everything from cars to construction, is a cornerstone of Chinese exports to the country. But the influx has battered local steelmakers, who last year called for an investigation into imports from China and India. While India escapes tariffs for now, Vietnam’s new levies—ranging from 19.38% to 27.83%—will hit about half of China’s HRC shipments starting March 7. The measures, set to last 120 days, signal Hanoi’s readiness to protect its industrial backbone amid a global trade showdown.
Pressure on Beijing
Vietnam’s tariffs add to mounting pressure on China to tame its colossal steel industry. Analysts like Jack Shang from Citigroup suggest that this wave of protectionism could force Beijing to revisit supply-side reforms, a tactic it used in the mid-2010s to curb overcapacity and shore up profits. “These moves should nudge China toward another round of discipline,” Shang noted, highlighting the potential for tighter production controls to steady the market. On the trading floor, the reaction was swift: steel futures in Shanghai dipped 1.3% by midday Friday, while Vietnam’s steel stocks climbed, reflecting investor confidence in the tariff shield.
The broader context ties back to U.S.-China tensions. Trump’s latest investment curbs, announced days before Vietnam’s tariff decision, aim to choke Chinese access to strategic U.S. sectors. While steel wasn’t explicitly targeted, the looming threat of blanket tariffs has amplified the urgency for Chinese producers to secure alternative markets—or face a profitability crunch. Vietnam, long a beneficiary of China’s supply chain shifts, now finds itself balancing opportunity and defense.
Vietnam’s Balancing Act
For Vietnam, the tariffs are more than a trade tactic—they’re a statement. The country has thrived as a manufacturing hub, drawing billions in foreign investment as firms diversify away from China. Yet its reliance on Chinese steel imports has left it exposed. By targeting HRC, Hanoi is safeguarding jobs and revenue at companies like Hoa Phat, whose lobbying helped trigger the anti-dumping probe. At the same time, Vietnam must tread carefully: China remains a vital economic partner, and overly aggressive measures could strain relations or disrupt supply chains.
The market response underscores the stakes. While China’s HRC futures slid, iron ore prices in Singapore held steady at $107.45 a tonne, suggesting resilience in raw material demand. Vietnam’s steelmakers, meanwhile, saw gains, buoyed by the prospect of a more level playing field. Still, the temporary nature of the tariffs—120 days—leaves room for adjustment, hinting at a pragmatic approach as Hanoi gauges the fallout.
A Wider Trend
Vietnam’s move mirrors a global pushback against China’s steel dominance. South Korea recently tightened its own import rules, while Brazil and India weigh similar levies. The collective action reflects a shared frustration: China’s export surge threatens industries far beyond its borders. For Vietnam, the challenge is to leverage this moment without alienating a neighbor whose economic heft still looms large. If successful, these tariffs could bolster domestic production and signal Vietnam’s growing assertiveness in a turbulent trade landscape.
As March 7 approaches, all eyes will be on how China responds—and whether Vietnam’s gamble pays off. For now, the message is clear: even as it welcomes investment, Vietnam isn’t afraid to draw a line in the steel.
On February 21, 2025, U.S. President Donald Trump signed a memorandum titled “America First Investment Policy,” signaling a sharp escalation in efforts to restrict Chinese investments in strategic American sectors like technology, infrastructure, healthcare, agriculture, and energy.
This move, aimed at safeguarding U.S. national security, is poised to redirect Chinese capital away from the United States—and Vietnam stands ready to catch the wave. With its strategic location, competitive labor costs, and established role as a manufacturing hub, Vietnam could see a significant influx of investment from Chinese firms looking to diversify their operations. However, this opportunity comes with its own set of challenges that Hanoi must navigate carefully.
A Shifting Global Landscape
Trump’s memorandum leverages the Committee on Foreign Investment in the United States (CFIUS) to block Chinese-affiliated investments in key industries, building on a trend of tightening restrictions that began during his first term and continued under the Biden administration. The policy reflects growing concerns in Washington about China’s access to American technology and resources, accusing Beijing of exploiting U.S. capital to bolster its military and intelligence capabilities. For Chinese companies, this translates to a shrinking welcome mat in the world’s largest economy—an unwelcome development amid their own domestic pressures, including economic slowdown and stricter regulations at home.
This isn’t the first time U.S. policy has pushed Chinese firms to look elsewhere. Since the U.S.-China trade war kicked off in 2017, Vietnam has emerged as a prime beneficiary of supply chain diversification. Multinational corporations and Chinese manufacturers alike have flocked to Vietnam, drawn by its proximity to China, affordable workforce, and access to global markets through 17 free trade agreements. Foreign direct investment (FDI) in Vietnam soared to $248.3 billion from 2017 to 2023, with Chinese investment nearly doubling in 2023 alone to $3.9 billion (excluding Hong Kong). Trump’s latest curbs could supercharge this trend, as Chinese firms seek new bases to maintain their global reach.
Why Vietnam?
Vietnam’s appeal is multifaceted. Geographically, it’s a stone’s throw from China, minimizing logistical costs for firms reliant on Chinese supply chains. Its labor force, while not as cheap as it once was, remains competitive compared to China’s rising wages. The country’s infrastructure—ports, roads, and industrial parks—has improved dramatically, making it a viable hub for electronics, solar panels, and electric vehicle components. Add to that Vietnam’s trade agreements, like the Regional Comprehensive Economic Partnership (RCEP), and it’s clear why companies see it as a launchpad to bypass U.S. tariffs.
Take the solar panel industry as an example. Chinese firms have already ramped up production in Vietnam, with exports to the U.S. hitting $4.2 billion in 2023—26% of America’s total solar panel imports that year. Trump’s new restrictions could accelerate this shift, pushing more Chinese manufacturers to set up shop in Vietnam to sidestep barriers to the U.S. market. Electronics giants like Luxshare and Goertek, suppliers to Apple, have also doubled down on Vietnam, with investments of $504 million and $280 million, respectively, signaling a broader “China-plus-one” strategy that could gain momentum.
The Upside for Vietnam
For Vietnam, this wave of investment promises economic growth and industrial upgrading. In 2024, the country’s economy expanded by 7.09%, outpacing most of its neighbors, driven by strong exports and foreign investment. Chinese capital could further bolster key sectors like semiconductors and high-tech manufacturing, areas where Vietnam aims to climb the value chain. Jobs would follow, boosting local employment and consumer spending. Moreover, as Chinese firms bring technology and expertise, Vietnam could position itself as a more sophisticated player in global supply chains, reducing its reliance on low-value assembly work.
The timing couldn’t be better. With the U.S. and China vying for influence in Southeast Asia, Vietnam’s “bamboo diplomacy”—balancing relations with major powers—positions it to capitalize on both sides. The U.S. has upgraded ties with Vietnam to a Comprehensive Strategic Partnership, eyeing it as a friend-shoring partner, while China’s Xi Jinping has pushed for a “shared future” with Hanoi. Caught in the middle, Vietnam can leverage this rivalry to attract investment from both, though China’s proximity and economic heft make it the more immediate opportunity.
The Catch
Yet, this golden opportunity isn’t without risks. A flood of Chinese investment could deepen Vietnam’s entanglement with China’s supply chains, raising concerns in Washington. The U.S. has already flagged Chinese firms using Vietnam as a conduit to dodge tariffs—solar panels being a prime example. In April 2024, U.S. authorities launched anti-dumping investigations into Vietnamese solar exports, and Trump’s return could broaden such scrutiny to other goods. Vietnam’s $104 billion trade surplus with the U.S. in 2023 already puts it on the radar; any perception that it’s a backdoor for Chinese goods could strain U.S.-Vietnam ties and invite punitive tariffs.
Employees use sewing machines at the Pan-Pacific Company Viet Pacific Clothing (VPC) factory in Vo Cuong, Bac Ninh province, Vietnam. Pan Pacific manufactures and exports feather-down products, apparel, bedding goods, and needlework products. Photo by SeongJoon Cho | Bloomberg | Getty Images
Domestically, Vietnam must tread carefully too. Anti-Chinese sentiment runs deep, fueled by historical tensions and disputes in the South China Sea. Past investments have sparked protests—like the 2018 backlash against special economic zones perceived to favor China. Hanoi will need to balance economic gains with public sentiment, ensuring Chinese projects don’t overwhelm local industries or exploit resources excessively.
Seizing the Moment
To maximize this opportunity, Vietnam should adopt a selective approach. Prioritizing high-value investments—think semiconductors over labor-intensive factories—could align with its long-term goals while minimizing U.S. backlash. Strengthening rules of origin and cracking down on transshipment would signal to Washington that Vietnam isn’t a mere passthrough. Investing in energy infrastructure to avoid blackouts, like those that plagued northern industrial parks in 2023, would also reassure investors of reliability.
Trump’s curbs on Chinese investment in the U.S. mark a pivotal shift, one that could funnel billions into Vietnam’s economy. If Hanoi plays its cards right, it could ride this wave to new heights, cementing its status as a global manufacturing powerhouse. But success hinges on agility—balancing economic ambition with geopolitical realities in a world where the U.S. and China are tugging ever harder in opposite directions.
