Vietnam looks for a plan B as tariff threat looms | FT #shorts

Economic Vulnerability - Vietnam's economy is vulnerable due to its reliance on exports to the US and investments from companies leaving China [1] - US President Trump's trade policies and escalating tensions between the US and China have highlighted this vulnerability [1] - Vietnam faces potential setbacks to its goal of becoming a developed country by 2045 due to its export-led growth model [2] Trade Relations with the US - Vietnam has the third largest surplus with the US [2] - Vietnam was hit with a 46% tariff rate [2] - Trump's actions serve as a wake-up call for Vietnam [2] Economic Diversification and Reforms - The Communist Party is seeking to re-engineer the country's economic model to reduce dependence on the US [3] - Efforts are underway to diversify export markets and boost the domestic market through reforms [3] - Economic reforms could mitigate the impact of tariffs on Vietnam [3]