Bruno Jaspaert, chairman of the European Chamber of Commerce in Vietnam and the chief executive of DEEP C, which runs industrial parks around Haiphong, Vietnam, Nov. 28, 2024. No country in Asia appears to have benefited more than Vietnam, especially in the north, from the scramble that followed when then President Donald Trump hit China with tariffs, igniting a global search for alternative manufacturers. (Linh Pham/The New York Times)
FROM his patio, Pham Van Thinh gazes at the sprawling LG electronics factory near Vietnam’s northern port of Haiphong. To him, the bright white behemoth represents transformation.
“It makes me happy,” says Van Thinh, 73, a retired police chief and Vietnam War veteran.
“All these young people, they have better lives.”
Six years ago, this cluster of factories didn’t exist. The turning point came when US President Donald Trump imposed tariffs on China during his first term, forcing global manufacturers to seek alternatives.
Few nations have gained as much from the shift as Vietnam, particularly its historically underdeveloped northern region.
Haiphong, a few hours’ drive from China, has blossomed into an industrial hub.
LG’s operations have expanded dramatically, while industrial parks brim with Chinese companies producing abroad.
Once a quiet village, Van Thinh’s hamlet is now a bustling boom town of 30,000.
Yet, as Vietnam’s trade surplus with the United States grows – now ranking third behind China and Mexico – questions loom over whether a second Trump presidency would sustain or stifle this growth.
A street in an area near several factories in Haiphong in the country’s north. — ©2025 The New York Times Company
Benefiting from global shifts
Trump’s tariffs set off a chain reaction. South Korean giants like LG and Samsung, Vietnam’s largest foreign investors, shifted production to the country.
LG sold its last two display factories in China and ramped up operations near Haiphong.
Other companies followed suit.
Between 2017 and 2023, Vietnam attracted over US$248bil in foreign investment for nearly 20,000 projects, according to Le Hong Hiep of the Iseas-Yusof Ishak Institute in Singapore.
That’s more than half of all foreign investment since Vietnam’s economy opened in the late 1980s.
The pandemic accelerated the trend.
Faith in China as a manufacturing hub faltered due to Covid-19 lockdowns and factory shutdowns.
Governments around the world, from Japan to the United States, incentivised companies to reduce reliance on China.
Vietnam emerged as a clear winner. Japanese subsidies to diversify supply chains went disproportionately to Vietnam, and South Korea’s “New Southern Policy” further strengthened ties.
Northern Vietnam’s ascent
For the first time since French rule in the 19th century, northern Vietnam has eclipsed the south as the nation’s economic engine. The north now leads in export value and foreign investment.
“The balance of power between these regions has shifted radically,” says Vu Thanh Tu Anh, an economist at the Fulbright School of Public Policy and Management.
Haiphong epitomises this transformation. The city of two million boasts new highways, bridges, and industrial parks. Cranes dot the skyline, while its port ranks among the world’s busiest.
Bruno Jaspaert, CEO of Deep C, which operates Haiphong’s industrial parks, attributes the region’s success to its proximity to Hanoi, abundant land and government investment.
“The north started later, planned better, and moves faster,” he says.
Since Trump’s tariffs, DEEP C’s revenues and profits have quintupled.
An aerial view of Deep C, an industrial zone where new factories are sprouting, in Haiphong, Vietnam. — ©2025 The New York Times Company
Local lives transformed
In villages near Haiphong, prosperity is palpable. Streets that once bordered rice fields now host restaurants and barbershops catering to factory workers.
Van Thinh, who manages 35 rental rooms with his family, marvels at the changes.
“I never could have imagined this,” he says.
Nearby, Pham Thi Cham, 55, transformed her backyard fish pond into rental units.
For workers like Tran Van Sy, 26, who migrated north from a poor coastal province, the jobs offer a chance to send most of their earnings back home.
“All nine of my grandchildren are studying at universities or working at factories,” Van Thinh beams.
Despite the optimism, uncertainties cloud Vietnam’s future.
Hanoi officials fear Vietnam could face punitive tariffs under another Trump presidency, targeting its trade surplus.
South Korean firms have paused some expansion projects, awaiting clarity from Washington.
Yet analysts believe Vietnam’s strategic importance as a manufacturing alternative to China may shield it from severe repercussions.
Van Thinh remains hopeful.
“Everything is going so well,” he says, gazing at the glowing lights of the LG factory. “These companies will continue to expand.” — ©2025 The New York Times Company
