Vietnam at the Crossroads: Strategies and Impacts of the US-China Technology Rivalry

Abstract

The escalating technological rivalry between the United States and China has profoundly reshaped the global geopolitical and economic landscape, presenting both opportunities and challenges for smaller nations like Vietnam. Positioned strategically in Southeast Asia and deeply integrated into global value chains, Vietnam is uniquely placed to navigate this rivalry. This study adopts an interdisciplinary approach, integrating middle power theory and geo-economic analysis to examine Vietnam's strategic responses. By leveraging its geographic location, fostering foreign direct investment (FDI), and promoting regional cooperation, Vietnam has capitalized on opportunities for technological advancement and economic growth. However, the country also faces significant challenges, including dependency on foreign technologies, cybersecurity vulnerabilities, and geopolitical pressures from the polarized global environment. This paper highlights Vietnam’s strategies to strengthen its technological capabilities, diversify supply chains, and enhance its influence within multilateral frameworks such as ASEAN and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). The findings provide valuable insights into how Vietnam balances economic interests and national security while adapting to shifting global power dynamics. As the competition between the US and China continues to evolve, Vietnam’s experience offers broader lessons for smaller nations navigating great power rivalries in the 21st century.