In a pivotal moment for U.S. foreign policy, President Biden is set to meet with Vietnam’s President To Lam today (Sept. 25, 2024), signaling a push for closer ties between the two nations. As this meeting unfolds, it raises critical questions about its implications for trade and regional stability, particularly in light of China’s ongoing threats.
Vietnam presents an intriguing case for the U.S. As a rapidly growing Southeast Asian economy, it has emerged as an alternative for companies looking to diversify their supply chains away from China. However, this relationship isn’t without its complications.
A single-party communist regime currently governs Vietnam, which stands in stark contrast to the democratic ideals espoused by the United States. This disparity raises concerns about labor rights and environmental standards, often overlooked when pursuing economic partnerships.
A vital issue for the Biden administration is the need to bolster domestic manufacturing, particularly essential medical supplies and personal protective equipment (PPE). The COVID-19 pandemic exposed the dangerous vulnerabilities of relying heavily on overseas production, especially from countries like China, known for its duplicitous trade practices and aggressive tactics.
Strengthening domestic capabilities enhances national security and ensures that the U.S. can respond effectively in times of crisis. This makes it imperative for the administration to create an environment where domestic manufacturers can thrive rather than risk losing ground to companies seeking to evade U.S. tariffs by routing products through Vietnam or taking advantage of other trade loopholes.
Without a formal trade agreement with Vietnam, the risk of transshipment—where goods are sent through Vietnam to avoid tariffs—looms large. If the administration is serious about countering China’s malign influence and protecting U.S. manufacturers, it must confront these potential loopholes with vigor. During the upcoming discussions, Biden should emphasize the importance of adhering to fair trade practices and clarify that any efforts to circumvent tariffs will be met with severe repercussions.
Strengthening ties with Vietnam can provide the U.S. with a strategic foothold in the region, but it requires a careful balancing act. The administration risks compromising its principles by aligning with a government that does not share American values. The stakes are high, and the need for a cohesive strategy that supports domestic manufacturing while holding trading partners accountable is urgent and critical.
As Biden navigates this complex relationship, the outcome of this meeting could set the tone for future engagements with Vietnam and other nations in the region. Ultimately, this meeting could redefine not just U.S.-Vietnam relations but also America’s broader approach to the challenges posed by China and authoritarian regimes worldwide.
The U.S. must stand firm against China’s unscrupulous tactics. We must ensure that our partnerships reflect democratic values and ethical practices, reinforcing the importance of American manufacturing resilience.