Trump’s return to the White House will heighten global political and economic uncertainty. He is expected to adopt a tougher stance on China, reduce Indo-Pacific military engagement, and favor bilateral deals. Trade wars may escalate, with sweeping tariff hikes impacting China, the EU, and Southeast Asian supply chains. Vietnam benefits from manufacturing shifts but faces risks from its trade surplus. Businesses must enhance geopolitical agility, develop early-warning indicators, and implement contingency plans to maintain operational resilience.
The EU Corporate Sustainability Due Diligence Directive (CSDDD) mandates large companies to conduct human rights and environmental due diligence across global supply chains and develop climate transition plans. Effective in 2024, it must be transposed into national law by 2026, with phased implementation from 2027 to 2029. Non-compliance may incur fines up to 5% of global turnover. Companies must integrate risk management, establish grievance mechanisms, and publish annual reports. Although SMEs are not directly regulated, they will face indirect pressure and should prepare early.
Global manufacturing value chains are being reshaped by geopolitical tensions, climate change, technological advances, and conflicts. Nations are prioritizing resilient supply chains, reducing reliance on single sources, and promoting domestic semiconductor and EV industries through policies and subsidies. The U.S. and Europe are investing heavily in chip production, while China strengthens R&D and dominates the EV value chain. Going forward, supply chain diversification and strategic industry competition will continue to redefine the global economic landscape.
