Chinese factories in Vietnam hammered by US tariffs: ‘where can I go now?’

Chinese exporters flocked to Vietnam to avoid US tariffs aimed at China, but Vietnam is now also facing a steep rise in duties

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Vietnamese workers stitch apparel at a factory in Ho Chi Minh City. Vietnam has attracted a surge of investment from Chinese manufacturers in recent years. Photo: AFP

Published: 1:40pm, 8 Apr 2025Updated: 3:45pm, 8 Apr 2025

Jayson Wu, the Chinese owner of a furniture factory in Hanoi, has no idea what he will do if US President Donald Trump goes ahead with his unprecedented “Liberation Day” tariffs.

The plan – which will raise US duties on goods from Vietnam by 46 per cent – has not come into effect yet, but it has already hit his business like a bomb.

“My US clients have cancelled all their orders, and the factory has come to a standstill,” Wu said. “I can only wait to see what happens with the tariffs on the 9th. Otherwise, where can I move the factory now? Most Southeast Asian countries are also facing tariffs.”

Wu is one of many Chinese business owners in Vietnam who find themselves facing a dilemma as Trump threatens to launch a full-blown global trade war.

Chinese manufacturers – particularly those in the electronics, furniture and textiles sectors – have flocked to Vietnam since 2018, when Trump imposed sweeping tariffs on Chinese imports during his first term in office.

For Chinese businesses, Vietnam offered a way to avoid US duties aimed at China, as well as low labour costs, cheap rent, and stable trade relations with China thanks to the Regional Comprehensive Economic Partnership (RCEP).