Critically, provincial-level investment facilitation efforts have also produced more Nonetheless, challenges remain for the country to upgrade its sectors. Among their limited linkage to FDl firms. World Bank data shows that in Vietnam, half of foreign-owned firms rely on material inputs and supplies of foreign origin. In the electronics sector, for example, local sourcing remains heavily concentrated in low-value packaging, plastics, and logistics services. This limits spillovers, raises import dependency, and slows Vietnam's ability to attract investments into higher-value manufacturing capabilities. competitiveness. Vietnam came under the tariff limelight when it was first uo (at) sn aua Aq eish u! sh!et ,lesodioas, asauhiy aun yo auo ym paddeis Liberation Day. Its role as an export platform for global firms, especially those of Chinese origin, also triggered closer US scrutiny of Chinese transshipment through Vietnam. The impact is already visible in some key sectors. In April-September 2025, inbound FDl in Vietnamese sectors such as semiconductors (-88.2%), automotive OEM (-88.2%), and industrial equipment (-80.0%) have plunged