Vietnam and the IPEF: Negotiating Prospects, Opportunities and Challenges - Foundation Office Japan / Regional Economic Programme Asia (SOPAS)
Vietnam is an emerging economy in the Indo-Pacific, actively engaged in trade agreements and regional economic integration. Led by the United States (US), the IPEF aims to foster a connected, clean, fair, and resilient economy in the region, aligning with Vietnam’s long-term economic policies. Participation in the IPEF offers promising prospects for addressing critical issues like supply chain diversification, technology innovation, climate change mitigation, and green development. Vietnam’s active role in the Association of Southeast Asian Nations (ASEAN) enhances its leadership and influence in the region. The paper highlights potential benefits for Vietnam’s resilient and clean economy, but challenges like low localisation rates and resource limitations need attention. Vietnam’s participation in the IPEF can offer support for improving competitiveness and achieving sustainability goals. Overall, the paper provides insights into Vietnam’s economic strengths, challenges, and the potential benefits of joining the IPEF for sustainable and inclusive economic growth.