Vietnam's Electronics FDI Sector: Ahead of Reciprocal Tariffs’ Effects

FiinRatings is pleased to introduce its latest Sector Spotlight Report: "Electronics FDI Sector Ahead of Reciprocal Tariffs’ Effects." FiinRatings based its analysis on data from companies selected for export-import value, revenue scale, industry representativeness and the availability of information sources.

FiinRatings - a Strategic Partner of S&P Global - is pleased to introduce its latest Sector Spotlight Report: "Electronics FDI Sector Ahead of Reciprocal Tariffs’ Effects." FiinRatings based its analysis on data from companies selected for export-import value, revenue scale, industry representativeness and the availability of information sources.

Electronics remains a pillar of Vietnam’s export economy, representing approximately 46.5% of total export turnover. However, export activity is highly concentrated, with just 48 major FDI firms accounting for 70% of the sector’s export value. Among them, Samsung-related entities contribute 30%, and Apple-related vendors contribute 9%.

Impact of U.S. Tariff Policy ("Trump 2.0"):

• Asymmetric Impact: While some firms benefit from full duty exemptions, others receive no tariff relief. The revised duty-free HS code list now covers essential items-including computers, smartphones, microchips, and display panels-yet these represent only 38% of Vietnam’s total electronics export.
• High-Tariff Exposure: Certain categories, particularly solar cell modules, are classified as transshipment goods and face steep anti-dumping duties of 52%–271% and countervailing duties of 68%–542%. Although this segment contributes modestly to total exports and employment, it is the most acutely affected.
• Mitigation through Tariff Agreement: in July 2, 2025, the agreement to cap reciprocal base tariffs at 20%-down from the originally proposed 46%-has alleviated concerns about FDI flight. While final details regarding sector-specific rates and “transshipment” tariffs (proposed at 40%) remain pending, the cap helps Vietnam maintain a competitive edge over regional peers such as Thailand, Indonesia, and India. Encouragingly, FDI inflows remained strong in the first half of 2025, reflecting sustained investor confidence.
• Opportunity to reshape the supply chain: Vietnam's current electronics supply chain reveals a substantial reliance on imports: less than 1% of input value is sourced from domestic suppliers, while 15% comes from FDI satellite firms, and the remainder is fully imported. The introduction of a 40% tariff on transit goods presents an opportunity to accelerate domestic supply chain development, increase local value-added, and improve resilience to external shocks.

If you have any questions or require further assistance, please contact us at:

• Email: support.fiinratings@fiingroup.vn
• Tel: (84-24) 3562 6962

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