Vietnam Manufacturers Face Layoff Fears Amid U.S. Tariff Threats

Hanoi, Vietnam - A survey conducted by the American Chamber of Commerce in Vietnam (AmCham) reveals that a significant number of U.S. manufacturers operating in the country anticipate potential layoffs if the Trump administration imposes tariffs on Vietnam.

Survey Findings

- Two-thirds of manufacturers foresee potential layoffs.
- 81% of respondents expressed concerns about potential tariffs.
- 92% of manufacturers expect a negative impact from tariffs.
- 94% of manufacturers anticipate supply chain disruptions.

Diversification Considerations

- 41% of respondents are considering diversifying business away from the U.S. market.
- Companies may redirect exports to other markets or adjust supply chains to reduce reliance on the U.S.

Economic Context

Vietnam has benefited from major investments by manufacturers relocating from China following Trump's 2018 tariffs. However, the mood has shifted with the recent tariff threats.

Industry Concerns

- Vietnam's large trade surplus with the U.S. could make it a target for new duties.
- Tariffs on semiconductors could have a significant impact on Vietnam, which is a major exporter of chips to the U.S.

International Impact

Concerns about U.S. tariffs are not limited to Vietnam. A separate Reuters survey found that 90% of Japanese firms anticipate negative effects on their businesses due to Trump's policies.