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ABSTRACT:

The escalating bilateral tensions between the world`s two largest economies have entered a critical phase, marked by the recent decision of the United States to impose additional tariffs on Chinese imports. In response to these protectionist measures, China subsequently announced retaliatory trade restrictions, resulting in the global economy entering a new phase of uncertainty. This study examines how Vietnamese firms are strategically reshaping their business model innovation within the evolving US-China trade war and seizing the opportunities toward higher firm performance. Our findings indicate that regulation and surveillance, geopolitical issues and warfare, tariff volatility, customer purchase power, and political philosophy orientation have a significant impact on Vietnamese firms’ reshaping business model innovation and achieving higher firm performance amid the current international political and economic environment. Addressing the current US tariff turmoil is not the only way to drive business model innovation for Vietnamese companies, but they also need a series of important links in promoting the progress of scientific international management.

KEYWORDS:

Regulation and Surveillance, Geopolitical Issues & War, Tariff volatility, Customer Purchase Power, Political philosophy orientation, SEM method

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