Tariffs, tech, and turmoil: The stakes inside Vietnam’s boom

This article summarizes an episode of Brave’s video series featuring Valerie Vu, founding partner of Ansible Ventures.

Valerie Vu, founder of Ansible Ventures / Photo credit: Ansible Ventures

Vietnam’s government was caught off guard by a 20% US tariff announced on social media, but the result was a strategic win. Valerie Vu, founding partner at Ansible Ventures, breaks down how this new reality is forcing manufacturers to prove their independence from China, and why a newly stabilized government is now shifting its entire focus to economic reform.

But as Vu explains, this new economic push is creating conflicting signals. While the country is promoting growth in tech, its actions in the energy sector are causing investors to lose trust.

An unexpected tariff win

While the original goal was a 10% tariff, Vu believes the final rate still gives the country a key advantage over its rivals in attracting foreign investment for its manufacturing sector.

A surprising announcement created a strategic advantage
Vu recounts, “our government already thought that we reached that 10% agreement already, and then suddenly President Trump just announced on his social media that we reached 20%. So, we were actually dumbfounded. But 20% is better than 46%, and it is still lower than India and China.”

A win against regional rival
This new rate gives Vietnam a clear advantage, especially over India, whose faced a 25% US tariff.

Vu notes, “We only care mostly about India, it is our biggest competitor in terms of getting foreign direct investment and manufacturing relocation. And India ended up with a higher tariff. So we can be a little bit peaceful here.”

The supply chain dependency challenge

This tariff advantage, however, creates new pressure on manufacturers to prove they are following the rules. To keep this favorable tariff, companies must show their supply chains are independent from China. This pressure creates an opportunity for startups that specialize in supply chain verification and transparency.

Compliance is necessary to avoid severe penalties
Vu explains that companies must avoid being labeled a “trans shipment” hub—a term for facilities that reroute goods from China to dodge tariffs. “If they find out that you are a trans shipment hub, you are added like 40% tariff. That’s the biggest question all the manufacturing business owners have right now.”

Transparency has become a business requirement
Vu states, “you have to show your supply chain, through and through, that you’re not a Chinese company. You have to show supply chain transparency. There must be some sort of credentialed way to mark off or verify.”

A state-directed technology overhaul