The US is reportedly urging Vietnam to reduce its reliance on Chinese technology in electronics and other high-tech devices assembled in the country and exported to America.

This initiative forms part of broader efforts to restructure global supply chains and decrease dependence on Chinese high-tech components. Reuters, citing three sources familiar with the matter, reports that the push is part of ongoing trade discussions between the two countries.

Vietnam has been asked to "reduce its dependency on Chinese high-tech," one source stated.

"That is part of the restructuring of supply chains and would in turn reduce US dependency on Chinese components," the individual added.

A second source indicated that the move aims to accelerate US decoupling from Chinese high technology while enhancing Vietnam's industrial capacity. The source cited virtual reality devices as an example of products assembled in Vietnam that rely heavily on Chinese technology.

All sources stressed that, although the US has issued broader requests for Vietnam to lessen its dependence on China, the issue of Chinese high-tech content in exports remains "a key priority".

US technology firms such as Apple, Samsung, Meta and Google rely on Vietnam for the production and procurement of technology components. Contractors in the country manufacture goods including virtual reality headsets and smartphones.

Washington has intensified efforts to restructure global supply chains and reduce dependence on Chinese components, particularly in high-tech sectors.

Although Vietnam has expressed willingness to adapt its supply chains, the transition is expected to be gradual and would require substantial investment in domestic capabilities, according to one source.

The discussions are part of an effort to avoid the imposition of heavy US tariffs – potentially up to 46 per cent – on Vietnamese goods, a threat initially raised under the Trump administration.

Such tariffs could seriously undermine Vietnam's export-oriented economic model and damage one of its key export markets, particularly as trade with China remains significant.

Last year, Reuters reported that China exported approximately $44 billion worth of technology goods to Vietnam, accounting for about 30 per cent of its total exports to the country.

In return, Vietnam shipped $33 billion in tech products that were relabelled as “Made in Vietnam” in an effort to bypass tariffs.

The broadcaster added that Vietnamese officials acknowledged the issue and are intensifying controls.

The latest round of negotiations in Washington, held last week, was the third meeting focused on trade dependencies between the two nations.

Despite some progress, critical issues remain unresolved. No firm date has been set for the conclusion of an agreement, while the 8 July deadline approaches – after which the proposed tariffs could come into effect, Reuters reported.

Vietnamese prime minister Pham Minh Chinh is reportedly planning a visit to the US, although no date has been confirmed, Reuters added.

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