Skip to main content

In US–China Trade War, Vietnam Stands to Benefit

As the United States considers imposing further tariffs on China amid ongoing trade tensions, foreign companies operating in China are shifting production to its southern neighbor, Vietnam. The disputes between the world’s two largest economies could prove a significant boon for the Vietnamese economy, which this year reached its highest rate of growth in the eight years.



Official data published by the Vietnamese authorities shows that the country’s GDP has grown by 7.1 percent in the first half of 2018, and its export average surged from 17 percent in 2017 to 20 percent through this June.

Foreign direct investment (FDI) into Vietnam increased by 9.2 percent from January to August in 2017 to $11.25 billion in the same period this year, Vietnam’s investment ministry said last month.

Because of geostrategic and commercial factors, Vietnam is unlikely to be a target of Trump’s trade war, despite its having a $40 billion trade surplus with the United States, said Bill Stoops, chief investment officer of Dragon Capital.

The pressure of rising costs associated with Washington’s tariffs on China is likely to draw foreign companies to Vietnam. “Even China might start to shift a lot more of its production to Vietnam,” Stoops told CNBC on Sep. 12. “This is the sort of trend we could see.”

Given the rate of Vietnam’s economic growth, it is also unlikely to suffer much from a U.S. Federal Reserve plan to increase interest rates over the next 12 months.

“If the U.S. is unable to offset lower Chinese imports by reshoring manufacturing, then continued strong demand conditions in the U.S. will have to be met from alternative sources,” Dwyfor Evans, the head of Asia Pacific macro strategy at State Street Global Markets, told CNBC on Sep. 10. “I will not import toys from China. Instead, I will import from Vietnam, so trade wars and protectionism actually end up as a positive for Vietnam.”

Compal Electronics, a Taiwanese original design manufacturer, is increasing production capacity in Vietnam. Techtronic Industries Company Ltd., a Taiwanese power equipment manufacturer, is increasing its production in low-cost countries and the United States. Its Vietnamese production line will not be impacted by U.S. tariffs.

Production costs in Vietnam are currently lower than those in China, which has made it an increasingly popular host of foreign investment over the last decade. The U.S. tariffs on China will only intensify this trend by further increasing the cost of goods produced in China.

“A lot of companies are relocating,” Robert Subbaraman, head of emerging markets economics at Nomura, told CNBC. “FDI inflows, in particular, have been very strong and have been providing good balance of payment support for Vietnam.”

theepochtimes.com

Popular posts from this blog

Tuyển dụng nhân viên sale xuất nhập khẩu

Công ty cổ phần xuất nhập khẩu Gralimex cần tuyển:

01 nhân viên sale xuất nhập khẩu
Làm việc tại thành phố Thanh Hóa
Ngành hàng: đồ hộp và thức ăn đại gia súc

Yêu cầu có kinh nghiệm ngành xuất nhập khẩu

Liên hệ: Mr Tình 0888 864 836

GRALIMEX, JSC.
Tel: +84 237 8655 789 or +84 975 267 425
Head office: No.4, Quang Hung ward, Thanh Hoa city, Thanh Hoa province, Vietnam
Website: www.gralimex.com (main page) www.gralfood.com (canned food) www.gralfeed.com (animal feed & agriculture residue)
E-mail: sale.gralimex@gmail.com

Vietnam among Rough Guide's 20 most beautiful countries

Vietnam has been listed as one of top 20 most beautiful countries in the world by Rough Guide.

The terrace fields in Sapa (Photo: City Pass Guide)

Based on the votes of readers from all over the world on its social media channel, the UK travel site provided the list for travelers to consider when booking their next holiday.

From the impressive rock formations of Ha Long Bay off the northern coast to the terraced rice fields of mountainous Sapa on the Chinese border, Vietnam has a wealth of easily accessible natural beauty, the site wrote.

Its cities are alluring too, whether you prefer the modern skyscrapers of Ho Chi Minh City or the appealing contrast in Hanoi between the old and the new as the country has rebounded with vigor in the 40 or so years since the end of the American War.

Rough Guide also appreciated that direct flights now arrive from cities worldwide, roads are being upgraded, new hotels are springing up, and Vietnam’s raucous entrepreneurial spirit is alive and well, bringi…

Farmers get smart to improve business

Vo Van Trung has become the first person in his village to go high tech and introduce modern facilities on his farm.


A farmer takes care of cantaloupe in a glass house in the southern province of Hau Giang. — VNA/VNS Photo Duong Chi Tuong


Trung has given up producing rice and is now growing fruit.

He has spent VND700 million (US$30,400) in 2015 to build a greenhouse system over 2,000sq.m to grow cantaloupe melons.

But business was so good he expanded creating an extra 1,000sq.m of greenhouse area.

Trung, lives in Tan Long B Village, Binh Thanh Commune, Phung Hiep District in the southern province of Hau Giang.

Trung harvests four times per year. His profits made up more than 70 per cent of the total takings.

So far many models of agriculture applying high technology have been successful.

In the Cuu Long (Mekong) Delta, , a smart watering system is applied in Can Tho City and Ben Tre Province and the model of rice and shrimp crop rotation is applied in Ca Mau, Bac Lieu, Soc Trang and T…