In a bold move, the United States has imposed a 46% reciprocal tariff on Vietnamese exports, making it one of the hardest-hit countries by the Trump administration’s effort to counter what it deems unfair trade practices.
In response, Prime Minister Pham Minh Chinh has ordered the creation of a quick response team to formulate countermeasures. Deputy Prime Minister Bui Thanh Son leads the team.
At a high-level meeting, Chinh emphasized the importance of “proactive and flexible measures” and urged U.S. officials to consider Vietnam’s status as a developing nation still recovering from the long-term effects of war. “Vietnam hopes the U.S. will adopt more appropriate policies given our strong bilateral relationship,” he said.
The high tariff threatens the country’s crucial sectors, such as electronics, textiles, and footwear, and could derail its strategic shift from low-cost outsourcing to global tech innovation.
Strategic response and policy adjustments
At a recent press conference, Deputy Minister of Finance Nguyen Duc Chi reiterated Vietnam’s commitment to sustainable trade rather than imposing tax hikes. “It is necessary to persistently find solutions, discuss, and collaborate with U.S. partners to move toward a trade balance that benefits consumers in both economies,” he said.
In a proactive step, Vietnam’s Ministry of Finance issued Decree 73/2025/ND-CP on March 31, significantly reducing import tax rates on 16 key items. This measure aims to improve trade balance, enhance competitiveness, and reduce costs for businesses and consumers, particularly with major partners, including the U.S.
Despite this diplomatic approach, the 46% tariff casts a shadow over Vietnam’s economic ambitions, especially its information and communication technology (ICT) sector, which is rapidly evolving beyond its outsourcing roots.
Vietnam’s ICT ambitions at a crossroads
Vietnam’s ICT sector rapidly transforms from cost-effective outsourcing to high-value software solutions, technology development, and digital transformation. The Ministry of Information and Communications (MIC) estimates the industry to generate $155 billion in revenue in 2024, employing 1.26 million professionals across 27,600 firms.
Leading firms, such as FPT Software and VNPT, invest heavily in cybersecurity, artificial intelligence, and cloud computing, securing global contracts and expanding operations in key markets such as the U.S., Japan, and Germany. This elevates Vietnam’s reputation as a rising digital powerhouse.
Driving this change is the National Digital Transformation Program, which aims to establish Vietnam as a leading digital economy by 2030. The government’s push for industry-academia collaboration and startup incubation fosters long-term innovation.
Despite robust growth, challenges persist. Vietnam must address talent shortages, improve intellectual property protections, and modernize infrastructure to stay competitive against tech giants from India, China, and the U.S.
Moreover, the new U.S. tariff could slow this momentum. As the U.S. accounts for 30% of Vietnam’s exports, totaling nearly $119 billion in 2024, any disruption could hurt funding, investor confidence, and market access for ICT players.
Nevertheless, with robust government backing, agile policies, and a skilled workforce, Vietnam remains determined to navigate trade challenges and emerge as a formidable global tech hub.
Read more Unity Communications and industry news on our main BPO News page.
Briones, J. A. (2025, April 2). Vietnam’s ICT sector evolves beyond outsourcing, eyes global expansion. Outsource Accelerator. Retrieved from https://news.outsourceaccelerator.com/vietnams-ict-global-expansion/
VietNamNet News. (2025, March 27). Vietnam’s tech giants making waves globally. Retrieved from https://vietnamnet.vn/en/vietnam-s-tech-giants-making-waves-globally-2383493.html
