The twenty-first century has been defined by deepening global economic interdependence, where the prosperity of nations increasingly depends on trade, investment, and secure supply chains that stretch across borders. This reality has made economic decisions inseparable from political considerations.
For the United States, adapting to these intertwined geopolitical and economic dynamics is critical to maintaining its position as the world’s leading economic and military power. As competition with China intensifies, the United States must prioritize building resilient trade relationships with strategic partners, and Vietnam is poised to become a valuable trade ally.
The United States is locked in a long-term strategic competition with China, driven by Beijing’s economic coercion and disregard for international norms. For too long, the Chinese Communist Party has engaged in intellectual property theft, financial manipulation, coercive diplomacy, and economic espionage with little accountability. These activities undermine global economic stability and threaten the international system that has driven prosperity for decades.
Washington has taken critical steps to counter China’s malign behavior, but real progress requires coordinated action with like-minded partners. The private sector has already begun to adjust. Facing rising costs, tightening regulations, and growing geopolitical risks in China, many businesses are rethinking their reliance on China’s manufacturing infrastructure. This trend presents a unique opportunity for the United States to build stronger trade relationships with countries offering both economic potential and strategic alignment.
Though Vietnam is a one-party state, it generally operates under a market economy. Its leaders in Hanoi also understand how serious the threat from China is. Vietnam has been fighting China for its sovereignty on land and at sea for decades. My last foreign trip as President Donald Trump’s national security advisor was to Vietnam, where the Vietnamese offered to host a visit from an American aircraft carrier. This was a welcome sign that greater cooperation would be on the horizon.
Vietnam has emerged as one of the world’s top destinations for companies seeking to diversify their supply chains away from China. Its skilled workforce, competitive production costs, and expanding infrastructure have attracted global giants like Apple, Samsung, Nike, Adidas, Intel, and Foxconn. Vietnam’s proximity to major shipping routes and its strong trade agreements further enhance its appeal as a manufacturing hub.
In many respects, Vietnam offers the benefits of China’s manufacturing ecosystem—without the same geopolitical risks. Its government has actively pursued policies aimed at integrating Vietnam into global supply chains, signing trade agreements with the United States, the European Union, and key Asia-Pacific economies. These efforts have made Vietnam one of the fastest-growing economies in the region.
Recognizing the risks of overdependence on China, the Trump administration took decisive steps to advance economic decoupling and incentivize supply chain diversification. Vietnam quickly emerged as a preferred alternative, with companies accelerating investments in new factories and logistics centers. This corporate-led shift has laid the groundwork for a more robust U.S.-Vietnam economic partnership.
The concept of “friend-shoring”—relocating production to trusted partners—has become a strategic necessity, not just an economic preference. Vietnam’s integration into American-led supply chains would reduce vulnerabilities while fostering long-term economic stability. Strengthening trade ties with Vietnam would also send a clear signal to Beijing that its coercive economic practices will only push global businesses and governments closer together in opposition. Whatever arrangements are made on trade will have to ensure strict guidelines on origin of materials. Chinese state enterprises cannot just set up Vietnam fronts and export Chinese goods to America. This issue will require a lot of cooperation between U.S. and Vietnamese customs authorities.
The United States and Vietnam share an alignment of strategic interests at a pivotal moment. Washington has signaled its commitment to deeper economic engagement, but Vietnam must also resist China’s aggressive influence campaigns. Beijing has intensified its efforts to pressure Hanoi into limiting its cooperation with the United States, viewing the potential partnership as a threat to its regional dominance.
However, Vietnam’s long-term interests lie in fostering an open, rules-based economic system supported by diverse trade relationships. By working with the United States, Vietnam can enhance its economic resilience, expand its access to global markets, and secure critical supply chains for the future. Now, it is up to Vietnam to choose to be that partner for the United States.
A comprehensive U.S.-Vietnam trade partnership would deliver mutual economic and strategic benefits. For the United States, strengthening ties with Vietnam would reduce supply chain vulnerabilities, open new export markets, and reinforce the broader Indo-Pacific economic framework. For Vietnam, deeper integration into the U.S.-led global economy would accelerate its development and elevate its international standing.
The stakes are high. The global economy is increasingly sensitive to geopolitical pressures, with disruptions in one region often triggering ripple effects worldwide. Expanding the United States’ network of reliable trade partners is essential to protecting national security and ensuring long-term prosperity.
This is how the economic competitions of the twenty-first century will be won—not through isolation or dependence, but through strategic partnerships built on shared interests, mutual trust, and a commitment to free and open markets.
The United States and Vietnam have a rare opportunity to reshape the economic and strategic landscape of the Indo-Pacific. It is time to seize it.
Ambassador Robert C. O’Brien was the twenty-seventh U.S. National Security Advisor from 2019-2021.
