US pushes Vietnam to decouple from Chinese tech, sources say

The United States is pressuring Vietnam in tariff negotiations to reduce its reliance on Chinese technology in devices assembled in Vietnam and exported to the United States, according to three people familiar with the matter.

Vietnam hosts major manufacturing operations for tech companies such as Apple and Samsung, which frequently depend on Chinese-made components. Meta and Google also have contractors in Vietnam producing goods like virtual reality headsets and smartphones.

The Vietnamese government has been meeting with local businesses to promote the use of domestic parts. While companies have shown willingness to cooperate, they have cautioned that more time and technological development are needed, one source said.

The Trump administration has threatened Vietnam with tariffs as high as 46 percent, which could significantly curtail access to the US market and disrupt Vietnam's export-driven economy.

One source familiar with the discussions said, “Vietnam has been asked to reduce its dependency on Chinese high-tech,” adding that the aim is to help restructure supply chains and lessen US reliance on Chinese components.

A second source noted that the ultimate goal is to accelerate US decoupling from Chinese technology while boosting Vietnam’s industrial capabilities. Virtual reality devices were cited as an example of Vietnam-assembled products that are overly reliant on Chinese tech.

All sources requested anonymity due to the sensitive nature of the talks. Reuters could not confirm whether the US has proposed specific targets, such as caps on Chinese content in “Made in Vietnam” goods, or different tariffs based on content levels.

Apple, Samsung, Meta, and Google did not respond to requests for comment.

With a US-imposed July 8 tariff deadline approaching, the timing and scope of any potential deal remain unclear. While the US has made broad requests for Vietnam to reduce its reliance on China, the reduction of Chinese tech content in exports is a top priority.

Last year, China exported roughly 44 billion US dollars’ worth of technology—including electronic components, computers, and phones—to Vietnam, representing about 30 percent of its total exports to the country. Vietnam exported about 33 billion US dollars’ worth of tech goods to the United States, accounting for 28 percent of its total shipments to America. Both figures are rising, according to Vietnam’s customs data.

Vietnam’s trade ministry did not respond to Reuters’ request for comment. Other sources previously said the United States demands were viewed as “tough” and “difficult” by Vietnamese negotiators.

The US also wants Vietnam to address the practice of re-labelling Chinese goods as “Made in Vietnam” to avoid higher duties—an issue that Vietnam is also attempting to resolve.

According to the ministry, a third round of talks held last week in Washington made progress, though key issues remain unresolved.

Vietnam’s Communist Party chief To Lam is expected to visit the United States and meet with US President Donald Trump, possibly in late June, according to officials familiar with the matter. No official date has been announced. The White House and Vietnam’s foreign ministry did not comment on the potential visit.

Not Too Fast

Vietnamese firms attending recent trade ministry meetings expressed a willingness to adapt, but warned that sudden changes could be devastating for business, one source said.

While Vietnam is gradually building an industrial base with local suppliers, it still lags far behind China in terms of supply chain sophistication and cost-effectiveness, according to industry experts.

“Vietnam is about 15 to 20 years behind China in fully replicating its supply chain scale and complexity, but it’s catching up quickly, especially in sectors like textiles and electronics,” said Carlo Chiandone, a supply chain expert based in Vietnam.

Abrupt policy changes could also strain Vietnam’s relationship with China, which remains a key investor and a source of both economic cooperation and geopolitical tension.

REUTERS