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US Pressures Vietnam to Reduce Dependence on Chinese Imports

US Pressures Vietnam to Reduce Dependence on Chinese Imports

According to a report by Reuters, the US has recently presented Vietnam with a lengthy and challenging tariff negotiation list, demanding that Vietnam reduce its reliance on Chinese industrial products and strengthen oversight of its domestic supply chain. Sources indicate that this request list was sent to Vietnam following the conclusion of the second round of negotiations at the end of May.

This move by the US aims to avoid imposing a "countervailing tariff" of up to 46% on imported goods from Vietnam. One source who has seen the document noted that the US is requesting Vietnam to lower its dependence on Chinese materials and components while enhancing domestic supply chain management, although specifics regarding numbers or quotas have not been disclosed.

Since the Trump administration imposed high tariffs on Chinese goods in 2018, Vietnam's exports to the US have nearly tripled, but so has its imports from China. If Vietnam fails to effectively reduce its dependency on China, it could face serious economic challenges.

Vietnam's manufacturing sector heavily relies on the Chinese supply chain, with many consumer goods like Apple devices and Nike shoes produced locally. Should a decoupling occur, it could impact the country's industrial competitiveness.

The response from Vietnam to the US requests remains unclear as these demands are seen as "difficult" and "challenging to implement." It is still uncertain whether Vietnam will provide a specific response before the deadline set by the US (this Wednesday).