# Trump’s Triumph: Vietnam Aims for a Neutral Position

- Link: https://www.thailand-business-news.com/trade/174202-trumps-triumph-vietnam-aims-for-a-neutral-position
- Published: 2024-11-12T08:13:00+07:00
- Author: News Desk

**Trump’s presidency may negatively impact Vietnam’s export-driven growth due to
potential tariff hikes. Vietnam will strive to balance its relations with the US
and China amidst these challenges.**

**Key View**

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 * Trump’s victory will cast a shadow on Vietnam’s export-driven growth path, particularly
   if tariffs are hiked. 
 * In response, we think Vietnam will try and maintain the delicate balance of ties
   between the US and Mainland China, partly to preserve the current growth model
   supported by exports and FDI from both superpowers.
 * Meanwhile, we think Trump administration will have a relatively minor impact 
   through investment and financial market channels. 

Donald Trump has been elected as the 47th US president. **Given his more ****hawkish
stance**** when it comes to the US’s trade deficits, we think his victory will cast
a shadow on Vietnam’s export-driven growth path, particularly if tariffs are hiked.**
While some of Trump’s policy proposals, such as tax cuts, could benefit short-term
US growth and potentially increase demand for Vietnamese exports, some others, such
as mass deportations and increased tariffs, could lead to labour shortages and a
renewed surge in inflation. What is certain is that the more protectionist stance
Trump has promised to adopt is negative for Vietnam, which has an export-driven 
economy integrated into the global supply chain. The US is a major trade partner
for Vietnam, absorbing 30% of Vietnamese exports. 

The potential for a Trump victory in the upcoming elections has sparked discussions
on Vietnam’s foreign policy direction, particularly its desire for a neutral stance
in global affairs. As the United States navigates a complex geopolitical landscape,
Vietnam recognizes the importance of maintaining a balanced relationship with both
Washington and Beijing. This strategy aims to safeguard its national interests while
avoiding entanglement in great power rivalries.

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Historically, Vietnam has adeptly maneuvered between competing influences, especially
during the Cold War. With Trump’s potential return to power, the unpredictability
of U.S. foreign policy could push Vietnam to reinforce its position as a neutral
player. This would involve enhancing diplomatic ties with various nations while 
remaining open to cooperation with all sides. By doing so, Vietnam hopes to mitigate
risks associated with external pressures and maintain its sovereignty.

In conclusion, Vietnam’s strategy to seek a neutral stance in light of a possible
Trump victory reflects its pragmatic approach to international relations. By balancing
its relationships with both the U.S. and China, Vietnam aims to promote regional
stability and foster economic growth while ensuring its own security in an increasingly
polarized world.
[Read More](https://www.fitchsolutions.com/bmi/country-risk/trump-victory-vietnam-actively-seek-neutral-stance-07-11-2024)