A Manufacturing Giant in Uncertain Times

In August 2025, the United States issued a presidential executive order that revised tariffs on Vietnamese goods. The new tariff rate was set at 20%, a step back from the earlier threat of imposing a 46% rate. While the numbers were lower than feared, the geopolitical message was clear—Vietnam’s trade posture remained under scrutiny. An additional 40% duty was also applied to goods suspected of being routed through Vietnam for transhipment.

Despite these developments, Vietnam’s manufacturing sector showed little sign of retreat.

As reported by Reuters, Vietnam’s economy expanded by 8.2% in the third quarter of 2025. The growth was noticed during the new tariff regime’s implementation and indicates that the country’s production capability and economic fundamentals are still strong.

Global Brands Are Not Pulling Out

Samsung, Vietnam’s largest foreign investor, continued operations in Bắc Ninh and Thái Nguyên with no disruptions. In fact, the company announced plans for a $1.8 billion expansion project. Meanwhile, Nike, which shifted more of its production out of China earlier this year, now counts Vietnam as its largest global manufacturing hub. Adidas also confirmed Vietnam as its leading sourcing base, accounting for 27% of its global output in 2024.

For these and other global players, Vietnam is not just an alternative—it’s an integral part of their supply chain strategies.

The Numbers That Tell the Story

Come October 2025, Vietnam’s cumulative registered foreign direct investment (FDI) had amounted to a whopping $28.54 billion. This number is a 15.2% growth compared to the previous year, thus exceeding, by a long shot, the initial forecasts. The FDI powerhouse is a strong vote of investor confidence in the fundamental factors of Vietnam’s market that are expected to remain in place for the long term.

Moreover, the country’s participation in the global trade forum, namely, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU-Vietnam Free Trade Agreement (EVFTA), continues to pique the interest of foreign investors. These treaties not only grant tariff-free status but also place Vietnam in the group of the most developed countries in the areas of labour, environment, and conflict resolution.

The Manufacturing PMI registered 50.4 in September 2025, revealing slight growth in the sector. Though it’s less than the earlier expectations, it still shows the sector’s stability amid a difficult trade quarter.

Why Vietnam Still Works

The essential factors are still to the account of Vietnam’s strategic attractiveness. There have been dramatic changes in the logistics infrastructure—Hải Phòng and Bà Rịa-Vũng Tàu deep-sea ports boost export capacity, while connecting new roads and railways are enhancing the inter-industrial zone connectivity.

Labour is still the main advantage. Even if salaries have increased in the cities, Vietnam still has one of the cheapest and most expert labour forces in Asia. The government has set up vocational training for electronics, assembly, and light engineering, which has started to produce more workers who are qualified for those jobs.

Some brands are considering Southeast Asia or Latin America as alternative sourcing options, but they are not leaving Vietnam. They are rather changing their tactics to incorporate Vietnam into the larger, more robust multi-country models.

Risk or Resilience? What This Means for You

In case you are a participant in worldwide sourcing, trade strategy, or brand operations, the Vietnam case gives a perspective on the management of external shocks. Changes in tariffs in 2025 were important yet did not shake the foundation. Those companies that had already made plans for these kinds of troubles went on with their operations without any major disturbance.

The transition at this stage is no longer to shift away from Vietnam but rather to incorporate greater flexibility. Among the elements included are the China+2 strategies, the creation of new regional warehouses, and tighter observation of customs and compliance operations. Vietnam is still positioned as one of the key points in the newly balanced structure.

Beyond Tariffs—A View from the Ground

The suppliers from Vietnam, according to industry feedback, are still in the process of onboarding new clients. Industrial parks are witnessing steady leasing activity. The Ministry of Planning and Investment has once again confirmed its support for FDI through policy instruments and incentives aimed at promoting long-term involvement.

In August 2025, the Vietnamese government lifted its GDP growth target to 8.3-8.5% from the previous 8% target, which was announced in February. The decision was a signal of restored trust in economic stability—despite the ongoing global trade disputes.

No business is idle in Đồng Nai, Bắc Giang, and Hải Phòng regions. Automation is rising, cost structures are being reviewed, and logistics capacity is being expanded. Resilience, in this case, is about flexibility.

What It Means for Consumers

The changes in policies are likely to be reflected in the pricing and availability for the end users. The companies may transfer a part of the tariff costs to the consumers, particularly in the case of electronics and clothing coming from Vietnam. A rise of 3–5% in the prices of some retail categories may be the case, according to the way firms will be handling their costs and margins.

At the same time, availability might be influenced by sourcing pattern changes. The items manufactured in restricted areas might experience either prolonged restocking cycles or inconsistent supply. On the other hand, a company with a more diverse supply chain could enjoy better transparency and better insight into the location and methods of production.

It might be an indirect effect of the brands adapting to geopolitical factors that the conscious customers would witness the labels and sourcing notes becoming more comprehensive.

What You Can Take Away

Vietnam’s current role in the global production landscape is less about being unaffected and more about being prepared. The country’s capacity to absorb trade-related stress while continuing to grow—both in economic output and foreign investment—makes it a critical part of the conversation for any brand with regional or global ambitions.

This isn’t a time to retreat. It’s a time to recalibrate.

If your organisation sources from Southeast Asia, reviewing your Vietnam exposure is a proactive step. Check your supplier tiers, assess compliance risks, and speak with partners on the ground.

Vietnam isn’t risk-free. But as the data shows, it continues to be relevant, responsive, and reliable.