Vietnam used to be a safe haven for trade. Now it might not be

During President Donald Trump’s first US-China trade war in 2018, American companies flocked to Vietnam to sidestep escalating tariffs, and the country became increasingly critical to their bottom lines.

- GRADY MCGREGOR

But in Trump's escalating trade fight across the globe, Vietnam has become a new target. Tensions were so high that there were doubts about whether US diplomats would attend Wednesday's events commemorating the 50th anniversary of the end of the Vietnam War.

Here's how some US businesses have come to rely on the country:

• Nike now produces half of its shoes in Vietnam and supports nearly half a million workers across 162 supplier factories.

• Apple, via contract manufacturers, employs more than 200,000 workers at 35 facilities. Apple suppliers have been offering sign-on bonuses and free housing to Vietnamese workers to support production.

• Firms like Intel and SpaceX have recently announced plans to expand in the country.

• In March, Vietnam welcomed the largest-ever delegation of American businesses — over 60 firms in total, including Apple, Boeing and Amazon — to explore opportunities for deepening ties to the country.

In all, American firms have enjoyed the benefits of cheaper Vietnamese manufacturing and calmer geopolitics.