In response to ING’s Deepali Bhargava, Vietnam emerges as ASEAN’s largest beneficiary from the US shift to a flat Part 122 tariff, given its export‑led progress mannequin and robust position in world provide chains. The elimination of upper IEEPA charges notably helps Vietnam’s concentrate on low‑worth‑added shopper items, widening its aggressive edge for US‑sure manufacturing.
Flat Part 122 boosts Vietnam exports
“The transfer to a flat 15% Part 122 surcharge sharply reduces Southeast Asia’s tariff burden and boosts its worth competitiveness. It’s an particularly necessary consequence for Vietnam, which depends closely on export-led progress; that is all of the extra necessary on condition that Vietnam is now the third-largest Asian exporter to the US.”
“Vietnam’s sturdy export exhibiting in 2025 already highlighted how firmly it has embedded itself in world provide chains. The most recent tariff adjustments reinforce that momentum, positioning Vietnam much more favourably as a key manufacturing base for US-bound items.”
“Vietnam’s shipments are closely weighted towards attire, footwear, toys, and different low-value-added shopper items – exactly the classes that have been disproportionately penalised below the outdated IEEPA framework. With these larger tariffs now gone, Vietnam’s aggressive edge widens additional, each regionally and globally.”
(This text was created with the assistance of an Synthetic Intelligence instrument and reviewed by an editor.)
