Reunification celebrations amidst a trade war

Vietnam is preparing for a special event: the 50th anniversary of the reunification between North- and South-Vietnam. Reflecting on the country’s journey over the past five decades, it is fair to say that Vietnam has significantly developed. Today the economy is thriving, citizens are enjoying peace, and there is a general sense of energy and enthusiasm. Indeed, Vietnam is moving towards becoming part of the developed world. Having said that, its economy was recently shaken up by a 46% United States tariff on Vietnamese export products. This action is worrying for many Vietnamese export businesses, especially in the fields of footwear, furniture, and textile. Meanwhile, the Vietnamese Government is doing what it can to minimize the negative effects of it. In this news post, we are having a look at how Vietnam is celebrating 50 years of reunification amidst a trade war.

Vietnam‘s 50 years of reunification

30 April 1975 marks the end of the Vietnam war, which ultimately led to the reunification between the North- and the South of Vietnam. Every year, Vietnam remembers and celebrates this “National Reunification Day”. This year, on 30 April 2025, it will be exactly 50 years, which is reason for an extra big celebration. Ho Chi Minh City will be the focal point for these celebrations, and the city is already preparing a series of grand events. On the one hand, these events aim to honor and commemorate the importance of 30 April in Vietnamese history. At the same time, the events aspire to be modern, attractive, safe, and enjoyable for the people of Vietnam.

Some scheduled Reunification Day activities:

• Military parade: over 13,000 soldiers will march in four groups. Starting from Le Duan Street (near the city’s zoo), they will make their way toward the Reunification Palace. The parade will begin at 6:30 AM, with formations dispersing in four directions.
• Air Force demonstrations: the Vietnamese Air Force is preparing a spectacular show, with 13 helicopters and 16 military aircraft set to participate. This event will offer spectators the chance to witness an aerial display.
• Motorcycle parade: a parade of motorbikes will take place. Motor riders will form images of the national flag and symbols representing the unity of the country. There will also be an image of President Ho Chi Minh.
• 21 cannon shot salute: a 21 cannon salute will be fired, accompanied by the Vietnamese national anthem. The cannon ceremony will take place at Bach Dang Pier along the Saigon River, where a public preview was held on 7 April 2025.
• Fireworks performance: several locations across Ho Chi Minh City will host fireworks shows to commemorate the anniversary. In addition, various cultural performances and art shows will take place throughout the city.

Vietnam and the US trade war

While Vietnam is preparing for these celebrations, its economy is facing a serious challenge. On 2 April 2025, the United States imposed a 46% “reciprocal” tariff on many of Vietnam’s key export products. This drastic move caught many people off guard. And it has already significantly affected economic forecasts and production plans in industries such as: footwear, furniture, and textiles. In 2024, the total trade between the United States and Vietnam was around USD 149.6 billion. This number includes USD 13.1 billion in import value, and USD 136.6 billion in export value. Vietnam’s total global export value in the same year was around USD 405.53 billion. Meaning that export to the United States counted for 33.68%. In this light, it is understandable that the tariff has shaken up the country and its economy.

The current situation (as of 12 April 2025)

A few days ago, on 9 April 2025, the new tariff rates officially came into effect. Not only for Vietnam, but for many countries around the world. These new tariffs have caused widespread market disruptions. Global stock markets have faced sharp declines, forcing some exchanges to suspend trading temporarily to prevent a market crash. One day later, the United States offered a delay of 90 days to 75 countries, including Vietnam. Most likely meaning that only the “base tariff” of 10% will apply to Vietnam for the near future. Even though this 90 day delay is cause for some relief, it does not seem to help much for general investor confidence. Because investors are increasingly looking for other investment channels, while the market situation remains volatile.

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*Dear reader, even though our VNHL Consulting team always tries its very best to provide its Clients with correct and complete info: we are not a Vietnamese law firm. The information in this post is therefore not meant to, and should also not be construed to, constitute legal advice. For specialized advice in the fields of law, accounting, tax, etcetera: we always recommend our Clients to speak with qualified specialists in those fields. We have several such specialists in our nationwide network, and we are always happy to introduce our Clients to them, when appreciated.