Strategic modesty: how Vietnam and the UAE use FTZs to navigate big power trade rivalries
“Some major powers respond [to tariffs] with brinkmanship, others with retaliation. But countries like Vietnam and the UAE aim not to change the rules, but to remain essential no matter who wins. Their FTZs are not weapons in a trade war, but hedges against it.”
“When confronted with US tariffs on solar components or charges of currency manipulation, Vietnam tends not to retaliate in kind. It quietly reforms or shifts focus — reinforcing ties with Japan, the EU and the Association of Southeast Asian Nations. It is pragmatic, valuing long-term market access above confrontational signalling.”
“Vietnam’s FTZs — particularly near Hai Phong, Da Nang and Ho Chi Minh City — are significant in this strategy, helping mask goods’ origin and reduce supply chain risk. Multinationals relocating from China use them to reclassify goods, finish assembly and meet rules-of-origin thresholds for lower tariffs to the US and EU.”
https://www.fdiintelligence.com/content/90201b9f-f593-4220-9eb4-ec57a093a6d7