Learn from Vietnam’s pragmatic Trump diplomacy

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Learn from Vietnam’s pragmatic Trump diplomacy

Published: 02 Apr. 2025, 00:03

Audio report: written by reporters, read by AI

Ko Young-kyung

The author is a research professor at the Yonsei University Graduate School of International Studies.

“I’d be happy to play golf all day with U.S. President Donald Trump.”

This remark by Vietnamese Prime Minister Pham Minh Chinh in January marked a striking turn in Vietnam’s foreign policy — one rooted in realism. He even hinted at a possible visit to Mar-a-Lago, Trump’s estate in Palm Beach, Florida. As former Japanese Prime Minister Shinzo Abe demonstrated, golf diplomacy can be an effective channel for cultivating ties with Trump.

Vietnam's Prime Minister Pham Minh Chinh in a joint press conference in Warsaw on Jan. 16.[AFP/YONHAP]

On Feb. 26, the Vietnamese government gave unexpected approval to Elon Musk’s Starlink service. Just two days later, the Trump organization announced a $1.5 billion golf resort and residential complex project in Vietnam in partnership with a local firm. Even as the United States steps up pressure on key trading partners — designating some of them the “dirty 15” and threatening tariffs — Washington and Hanoi appear to be enjoying a golden hour in their bilateral ties.

Vietnam is widely seen as one of the biggest economic winners amid global geopolitical instability and the intensifying U.S.-China trade rivalry. Its economy grew by 7.09 percent in 2024, the second-highest rate in the past five years after 8.02 percent in 2022. The World Bank recently raised its 2025 growth forecast for Vietnam from 6 percent to 6.6 percent, while Singapore’s UOB revised its outlook to 7 percent.

Vietnam’s trade surplus against the United States amounted to around $104.3 billion in 2024 — a figure that includes the effects of Chinese companies relocating production to Vietnam. Trump previously labeled Vietnam “worse than China” in terms of unfair trade.

In response, Hanoi has tightened its rules to verify the origin of exports, aiming to curb transshipments from China, and has overhauled laws to improve the investment environment for U.S. businesses. Following a Trump-era tariff announcement, Vietnam’s trade minister promised increased imports of U.S. agricultural goods, the purchase of Lockheed Martin military transport aircraft, fulfillment of an order for 200 Boeing 737 MAX planes and an expansion of U.S. LNG imports.

Prime Minister Pham, meeting with the U.S.-Asean Business Council, outlined concrete measures to address the trade imbalance — including increasing imports of U.S. food and energy, tightening rules of origin, and calling for U.S. recognition of Vietnam’s market economy status.

‘Bamboo Diplomacy’ and Vietnam’s Strategic Balancing Act

Vietnam is practicing a flexible and pragmatic foreign policy known as “bamboo diplomacy.” Hanoi is pursuing a comprehensive strategic partnership with the United States while managing its ties with China with equal strategic precision.

U.S. President Donald Trump is handed a Vietnamese flag as he is greeted by students at the Office of Government Hall in Hanoi, Vietnam, on Feb. 27, 2019. [REUTERS/YONHAP]

When national interest demands, Vietnam is willing to rewrite its own rules. For decades, it tightly restricted foreign investment in telecommunications. But for Elon Musk’s Starlink — closely aligned with Trump — Vietnam not only granted an exception but also amended regulations to permit 100 percent foreign ownership of satellite internet services.

As Washington prepares to announce a new round of tariffs on April 2, Vietnam remains at risk of being targeted. Even so, its proactive economic diplomacy may help it limit the damage.

Vietnam’s relative political stability and steady economic growth give it a competitive edge over other emerging markets such as Turkey, the Philippines and Indonesia, which have all seen recent political turbulence. Vietnam also benefits from strong backing by U.S. industry: Major corporations such as Apple, Intel and Nike have already established a substantial presence in the country.

Toward a Korea–Vietnam–U.S. strategic economic nexus

Vietnam’s deft handling of Trump-era trade tensions is not just a matter of interest for Hanoi — it also carries implications for Seoul. Both Vietnam and Korea face similar challenges: export-driven economies that are frequently singled out as contributors to America’s trade deficit. Vietnam now ranks third in trade surpluses with the United States, while Korea ranks eighth.

The economic fates of the countries are deeply intertwined. Korea is Vietnam’s top investor, and Vietnam is home to the largest number of Korean business operations abroad. According to Hanoi's Ministry of Planning and Investment, over 10,000 Korean projects are currently underway. Korea also ranks first in total accumulated foreign direct investment in Vietnam.

The two are closely linked in the manufacturing value chain: Korea supplies core components, while Vietnam assembles the final goods for export to markets such as the United States. Samsung Electronics, for example, operates six production facilities and an R&D center in Vietnam, accounting for 14 percent of the country’s total exports.

To weather the Trump-era trade storm, Korea must embrace the strategic economic interdependence among Seoul, Hanoi and Washington. Vietnam is leveraging its flexible “bamboo diplomacy” to read Trump’s cues and pursue pragmatic national interests. Korea, in turn, can support Vietnam in strengthening its origin verification systems and other compliance mechanisms to reduce friction with Washington.

Translated from the JoongAng Ilbo using generative AI and edited by Korea JoongAng Daily staff.