Vietnam Emerges as Asia’s Next Tech Powerhouse Amid Tariffs and Trade Tensions

Hadisur Rahman, JadeTimes Staff

H. Rahman is a Jadetimes news reporter covering Asia

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Photo Credit: Linh Pham/Bloomberg

Vietnam’s rapid economic ascent is showing no signs of slowing, even as global trade tensions continue to roil markets. From facing steep U.S. tariffs to securing a coveted emerging-market status upgrade from FTSE Russell, the Southeast Asian nation is now attracting some of the world’s biggest technology players including Apple Inc.

According to people familiar with the matter, Apple is preparing to manufacture its first smart home hubs and potentially household robots in Vietnam, partnering with Chinese EV giant BYD Co. The move marks a major step in Apple’s ongoing diversification away from China, signaling that Vietnam has become an essential node in global supply chains.

Once threatened with tariffs as high as 46% under former President Donald Trump, Vietnam is now being hailed as one of Asia’s fastest-maturing production hubs. The economy expanded 8.23% in the July-September quarter its fastest pace in three years as factories accelerated exports to the U.S. ahead of new levies.

“Vietnam has moved swiftly to secure lower tariffs and reform its economy to boost productivity,” said Trinh Nguyen, senior economist at Natixis SA. “This has allowed the country to emerge as a winner under Trump 2.0.”

Major global manufacturers such as Samsung and Nike have already set up operations there, and Apple CEO Tim Cook has indicated that nearly all iPads, MacBooks, and AirPods for the U.S. market will soon be made in Vietnam.

While risks remain including potential dips in U.S. demand and foreign investment Vietnam’s stock market is up 40% this year, buoyed by optimism over its growing role in global trade. As Michael Piro of Indochina Capital noted, “Vietnam is no longer just a low-cost factory it’s a critical link in the world’s technology and electronics ecosystem.”