Vietnam in Tech Tariff Tussle: Striking a Balance

The U.S. is pressuring Vietnam to reduce the use of Chinese technology in its exports to America, aiming to restructure supply chains and lessen dependence. Negotiations involve major tech firms, but challenges remain due to Vietnam's current reliance on Chinese components and its evolving industrial ecosystem.

The United States is urging Vietnam to decrease its reliance on Chinese technology in devices assembled in the country and exported to the U.S., according to sources with knowledge of the discussions.

Vietnam hosts manufacturing operations for tech giants like Apple and Samsung, which often use components produced in China. The country is holding meetings with local companies to enhance the use of Vietnamese parts, although companies admit that achieving change will take time and technological advances.

The Trump administration has threatened Vietnam with severe tariffs, which could hinder the country's export-driven growth. The U.S. aims to speed up its detachment from Chinese high-tech, while simultaneously boosting Vietnam's manufacturing capacity.

(With inputs from agencies.)