Vietnam’s Communist Party Chief, To Lam, congratulated former U.S. President Donald Trump on his recent electoral victory in a phone call on Monday. The conversation between the two leaders covered avenues for enhancing economic collaboration, according to an official statement from the Vietnamese Communist Party. The United States remains Vietnam’s largest export market, making the relationship a crucial element in the Southeast Asian nation’s foreign policy. With the two countries recently elevating their relationship to a “comprehensive strategic partnership,” the discussions underscored a mutual commitment to building a robust and enduring partnership.
To Lam’s statement emphasized Vietnam’s readiness to work towards a “stable and long-term development” of bilateral relations, underscoring economic cooperation as a foundation of the Vietnam-U.S. relationship. Trump echoed this sentiment, expressing his respect for the economic relationship and his interest in further strengthening cooperation. As both leaders recognized the value of bilateral trade, they also acknowledged potential challenges, as experts recently indicated that a second Trump administration could introduce trade volatility. This volatility stems from Trump’s historically protectionist policies, which could complicate trade for Vietnam while potentially opening opportunities as U.S.-China tensions persist.
The timing of this discussion is crucial as Vietnam remains one of the fastest-growing economies in Asia, with a robust manufacturing sector heavily reliant on exports to the U.S. market. Vietnamese exports to the U.S. include electronics, garments, and textiles, all of which contribute significantly to Vietnam’s GDP and employment. Trump’s prior emphasis on recalibrating trade relations, particularly with China, has already had a profound impact on global trade dynamics, and Vietnam has previously positioned itself as a viable alternative in the supply chain for U.S. businesses seeking to mitigate their reliance on China.
The diplomatic rapport between Trump and Vietnam dates back to his first term when he visited the country twice. The first visit was to attend the Asia-Pacific Economic Cooperation (APEC) Summit, showcasing the region’s economic interconnectedness. The second was during his high-profile meeting with North Korean leader Kim Jong Un, where Vietnam served as a neutral host, illustrating its role as a peace broker and diplomatic player in the region.
Trump’s visits bolstered Vietnam’s status on the global stage and underscored the growing importance of U.S.-Vietnam relations. The meetings symbolized the convergence of strategic interests between the two nations, especially concerning economic growth, regional stability, and security in the South China Sea. During his first term, Trump focused on reducing the U.S. trade deficit and encouraging American businesses to reconsider their supply chains. This spurred American firms to explore Vietnam as an alternative manufacturing base to China, a trend that has only accelerated in recent years.
Vietnam’s export-driven economy has positioned it as a vital trading partner for the U.S., and this relationship has provided a buffer for Vietnam amid regional challenges. The U.S. accounts for approximately 29% of Vietnam’s total exports, with goods ranging from technology and consumer electronics to agricultural products and textiles. The comprehensive strategic partnership established in September last year is the highest level of diplomatic relations in Vietnam’s system, marking the U.S. as a key ally in economic, security, and strategic domains. This upgrade not only deepens bilateral trade and investment but also signals both nations’ mutual commitment to security and political cooperation, with an implicit focus on countering China’s regional influence.
The elevation of this partnership comes at a time when Vietnam has made strides to balance its foreign policy. By diversifying partnerships beyond China, Vietnam aims to strengthen its sovereignty, particularly in the South China Sea, where China’s territorial claims have often conflicted with those of Vietnam and other Southeast Asian nations. Vietnam’s multi-tiered approach to diplomacy seeks to preserve its autonomy while benefiting from the economic and security backing of the U.S. and other global powers.
Despite the mutual eagerness for closer economic ties, trade experts warn that a new Trump administration could introduce elements of uncertainty for Vietnam. Trump’s protectionist trade policies have been known to be stringent, often involving tariffs and trade imbalances. According to trade analysts, Vietnam’s position could prove complex if Trump renews his stance on reshaping trade agreements to prioritize American industry. While increased tensions between the U.S. and China may benefit Vietnam’s exports in the short term, there are concerns that protectionist policies could lead to unintended “collateral damage” for smaller nations caught in the crossfire.
Supply chain experts note that Trump’s focus on reducing dependence on foreign imports could compel U.S. companies to shift their supply chains closer to home. This could impact countries like Vietnam, which has benefited from U.S. firms seeking to diversify their manufacturing bases away from China. A more localized U.S. supply chain strategy could challenge Vietnam’s aspirations for export growth, though it remains likely that some level of production will continue to flow to the country as American businesses seek cost-effective alternatives to Chinese manufacturing.
As Vietnam aims to deepen economic ties with the U.S., the country has taken steps to safeguard its economy against potential trade headwinds. Vietnam has been expanding its network of free trade agreements, ensuring that it remains competitive on the global stage. Notably, the country is a participant in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which has allowed it to secure more diverse trading relationships.
Vietnam’s proactive approach to economic resilience has helped position it as a critical player within the global supply chain, and it has attracted foreign direct investment (FDI) from several multinational corporations, especially in electronics and technology manufacturing. This strategic positioning has made Vietnam an attractive destination for U.S. firms exploring alternative locations amid tensions with China.
With both Trump and To Lam extending invitations for reciprocal visits, the path for further diplomatic engagements appears open. Such visits could symbolize a reaffirmation of both countries’ commitment to fostering peace, security, and economic progress. Vietnam’s role in Southeast Asia positions it as an ally to the U.S. in balancing regional dynamics, especially as Washington seeks partners to uphold the rules-based international order in the Indo-Pacific region.
The Vietnamese Communist Party’s statement emphasized its long-term vision for a stable bilateral relationship, aiming to benefit the people of both nations. In practice, this suggests a roadmap for continued collaboration, particularly in technology, energy, and infrastructure development. Vietnam’s focus on sustainable development and green energy could complement American investments and technology transfer, particularly as Vietnam seeks to meet its climate commitments under the Paris Agreement. Both nations have a vested interest in ensuring that their economic relationship thrives, and as the U.S. continues to seek partnerships in Asia, Vietnam’s role as a stable and cooperative partner becomes increasingly valuable.
