Tech, talent and Trump pose risks to Vietnam’s economic strategy

Vietnam, which has benefited from a shift of supply chains from China due to US tariffs, may face challenges with potential trade restrictions under US President-elect Donald Trump, while the growth of its low value-added export model is slowing due to a diminishing supply of young workers. On the other hand, despite lagging behind in critical artificial intelligence infrastructure and dealing with insufficient electricity supply for factories, Vietnam's outlook for 2025 should remain positive if it can avoid tariff impediments and raise productivity, for example by strengthening the private sector and embracing new technology.