Vietnam Defies Trump Tariffs: Chinese Investment Steady in 2025

Washington's 40% transshipment tariff wall is high, but Chinese capital is climbing right over it. According to Reuters, Vietnam saw a surge in Chinese investment throughout 2025, proving that the Southeast Asian nation remains an indispensable hub for global exports despite intensifying trade friction.

Why Vietnam Chinese Investment Remained Strong in 2025

The Vietnamese economy grew by 8% in 2025, its highest performance in three years. This growth wasn't accidental. It's driven by Chinese firms like Chery, which plans to open its largest ASEAN factory in Vietnam by mid-2026. These companies aren't just looking at the U.S. market; they're using Vietnam as a launchpad for the EU, Africa, and the rest of Southeast Asia.

To sweeten the deal, the Vietnamese government has pledged to cut administrative paperwork by 30%. This proactive stance aims to solidify the country's position as the primary alternative to mainland China manufacturing, even as Donald Trump's policies attempt to decouple these trade flows.

Navigating the Transshipment Trap

The situation isn't without its thorns. Footwear and garment manufacturers in the region are already feeling the heat from U.S. tariffs. While Vietnam acts as a buffer, the risk of being labeled a 'tariff dodger' remains a significant geopolitical hurdle for local policymakers.