Amid U.S. pressure on Vietnam to strengthen oversight of goods re-exported from China, President To Linh has responded. On September 21, during an interview in New York, he stated: “We do not accept transshipment trade. Trade must be genuine—products must truly originate from Vietnam and meet international standards as well as our requirements, not only for the U.S. market but also for other international markets in which Vietnam participates. At the same time, Vietnam hopes to increase imports of high-tech products from the United States, including aircraft, nuclear power equipment, and infrastructure for roads and railways.”
The high-level nature of President To Linh’s visit to the United States underscores the significance Vietnam places on this diplomatic engagement—accompanied by more than a dozen ministers, effectively bringing nearly half of Vietnam’s government leadership to New York. This move reflects how critically Vietnam views the outcome of these negotiations, particularly given that the trade deficit with the United States reached nearly $140 billion in the first seven months of 2026, accounting for 78% of last year’s total. As such, Vietnamese officials are deeply concerned about the potential imposition of steep tariffs by the United States—a scenario that would severely disrupt Vietnam’s export-dependent economy.
Yet Vietnam’s external trade position remains precarious. In essence, Vietnam earns revenue from the U.S. market but reinvests much of it into sourcing raw materials from China. In the first eight months of this year, Vietnam imported $161.9 billion worth of goods from China, resulting in a trade deficit of $107.7 billion. Over 72% of electronic components and 58% of textile raw materials are sourced from China. Meanwhile, exports to the United States totaled $122 billion, generating a trade surplus of $106.6 billion. The United States accounts for 32.1% of Vietnam’s total exports, making it Vietnam’s largest export destination. Should the U.S. impose tariffs exceeding 50%, compounded by existing base tariffs of 20%, Vietnam’s export sector would face existential risk.
What lies ahead will depend on how Vietnam navigates its balancing act between the two major economies. Neither side can be alienated without severe consequences. If the United States continues to escalate pressure, the challenge for Vietnam will be nothing short of “apocalyptic” in difficulty.
Original source: toutiao.com/article/1877003215077379/
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