US Deal Leaves Vietnam Grappling With Role in Global Economy

With the dust far from having settled on this week’s US-Vietnam trade agreement, one thing is clear: companies operating in what’s become one of the most vibrant Asian economies are on notice to move up the value chain.

A key element of the deal first unveiled by US President Donald Trump is a differentiated tariff setting, with a 20% American surtax on Vietnamese-produced goods and a 40% levy on those trans-shipped from elsewhere through Vietnam. That’s largely aimed at China, which produces many of the inputs companies operating in its southern neighbor use for assembling their products.