Vietnam manufacturing FDI hits five-year high as US tariff sunset nears

Vietnam drew a five-year-high $13.03 billion in realized foreign direct investment in the first half of 2026, with manufacturing taking the bulk of the money. The surge comes days before a U.S. import surcharge expires, sharpening attention on suppliers already operating in both Vietnam and China.

Why it matters: - Vietnam's manufacturing base is attracting more capital just as U.S. import policy shifts again, which could speed sourcing decisions for OEMs that want supply chains already in place. - The timing favors companies with dual-country production and validated tooling, workforce, and certifications.

What happened: - Vietnam received $34.65 billion in registered foreign direct investment in H1 2026, up 61% year over year. - Realized FDI disbursement reached $13.03 billion, the highest first-half level in at least five years. - Manufacturing and processing accounted for 82.6% of disbursed FDI, or $10.76 billion. - Sunshine Electronics said its Vinh Phuc factory is marking its eighth year of production in 2026. - The company operates facilities in Changzhou, China, and Vinh Phuc, Vietnam.

The details: - The Vinh Phuc plant opened in 2018 and covers 12,000 square meters. - Sunshine Electronics says the Vinh Phuc site employs more than 600 workers. - The Changzhou parent site employs 200 workers. - Sunshine Electronics says its dual-factory base has more than 800 direct workers. - Combined annual capacity includes 10 million power adapters and 25 million network cable assemblies. - A Sunshine Electronics manufacturing planning team member said Vietnam's FDI scale makes it harder for new operators to stand up local production quickly. - The same team member said the Vinh Phuc site's value comes from supplier validation, tooling, and workforce experience already in place. - Sunshine Electronics says dual-factory operators can shift 30% to 50% of production between Vietnam and China within 60 to 90 days without OEM requalification. - Both sites use ISO 9001, TL 9000, ESD S20.20, and IECQ QC 080000 certifications. - Both sites also hold ISO 14001, ISO 27001, and BSCI certifications. - Sunshine Electronics says IQC, IPQC, and OQC inspection runs at a minimum AQL 1.0%. - Vietnam's Index of Industrial Production rose 10.8% year over year in H1 2026. - Manufacturing subsector output rose 11.4%. - Q2 manufacturing growth accelerated to 11.2%. - Inventory ratios fell to 82.2% from 85.7%, signaling capacity absorption. - The U.S. Section 122 balance-of-payments import surcharge sunsets at 12:01 a.m. EDT on July 24, 2026. - The surcharge is a 10% duty imposed on February 24 and expires by operation of law after 150 days. - No extension legislation is currently pending in Congress. - The broader U.S.-China tariff framework negotiated at the Busan summit in November 2025 remains in effect through November 10, 2026. - That framework suspends heightened reciprocal tariffs and extends Section 301 exclusions on 178 line items.

Between the lines: - The combination of Vietnam's investment surge and the near-term U.S. tariff reset is nudging procurement toward suppliers that can move production across borders without a long ramp-up. - Sunshine Electronics is positioning its Vietnam and China footprint as a hedge against policy swings and customer requalification delays.

What's next: - Sunshine Electronics plans to discuss dual-factory sourcing with North American OEM buyers at SCTE Cable-Tec Expo 2026. - The event runs Sept. 29 to Oct. 1 at the Georgia World Congress Center in Atlanta. - Sunshine Electronics will be at Booth #G1346. - More information