today on Forbes under Trump tariffs made in Vietnam will be the new made in China president-elect Donald Trump says his plan to impose heavy tariffs on Goods imported to the US will shrink the federal deficit lower food prices and create more jobs at home on the campaign Trail in Savannah Georgia he vowed to quote relocate entire Industries to the US in September he said quote you will see a mass Exodus of manufacturing from China to Pennsylvania from Korea to North Carolina from Germany to right here in Georgia however such reshoring is unlikely to happen certainly
not at the scale and speed that Trump wants if ever instead expect to see one country as a major beneficiary of Trump's policies Vietnam Jason Miller a professor of Supply Chain management at Michigan State University told Forbes quote if previously it was made in China now it's going to be made in Vietnam that production is not coming back to America during the previous Trump Administration major foreign corporations including apple foxcon and Intel started pivoting to Vietnam as a way to diversify their manufacturing portfolio just 2 months ago SpaceX announced a $1.5 billion investment in Vietnam
too even the Trump organization is investing in the country with a recent recently trumpeted $1.5 billion luxury real estate deal and now the Southeast Asian nation is well positioned to benefit even more from the anticipated anti-china sentiment of the forthcoming Administration especially if it moves quickly to streamline regulation so that businesses can move in quickly Vietnam has a number of advantages over other Regional Rivals like India first as a single-party authoritarian State Vietnam can and does set new business business friendly policy quickly Additionally the country is geographically well positioned it already has three of the
world's top 50 busiest ports and is next door to China making trade and Logistics between the two countries easier critically Vietnam also has a free trade agreement with the European Union the only other Regional country besides Singapore to have one India is currently negotiating such a deal which would smooth imports and exports between the EU and the world's most populous country Vietnam is also moving quickly to improve the infrastructure needed to support large projects like the country's new decree earlier this year that allows companies to buy green energy from solar power producers rather than go
through the traditional state power utility the move which makes it easier for companies to meet their climate targets was applauded by Apple Samsung the country's largest foreign investor and the United States Embassy in Hanoi Trump has repeatedly said in recent months that that he wants to promote American manufacturing and make foreign-made Goods more expensive to import he singled out Mexico as well as China saying earlier this month that he would Implement tariffs of between 25% and 100% on products made South of the Border previously he said that goods made in China should be hit with
a 60% tariff while anything manufactured abroad should have a blanket 20% tariff including Vietnam but the country clearly sees an opportunity for grow grow anap Tran a professor of governance at Indiana University and a former adviser to the Vietnamese prime minister told Forbes quote Vietnam could be mildly successful or it could be hugely successful depending on how it facilitates this foreign direct investment wave trun said he is currently preparing a memo for Hanoi about how his home country can capitalize on these strict new trade rules as Vietnam bets that a huge influx of foreign Capital
will help transform it into a developed high-income country by 2045 at the top of tr's list is targeting multinational corporations that will bring their own ecosystem of suppliers and focusing on higher value Goods he said quote Vietnam should prioritize companies that will bring other companies to Vietnam if you bring Apple there are a lot of other suppliers that want to be close to Apple companies that allow Vietnam to move into a more high-tech sector instead of doing Footwear and textiles Vietnam should aim for bu biotechnology and Ai and semiconductors for full coverage check out Cyrus
fivar piece on forbes.com this is Kieran Meadows from Forbes thanks for tuning in
