Emerging economies are chasing companies to get more FDI, but companies are chasing Vietnam to move there, said HSBC.
Falling one place to 11th in the global index of emerging logistics markets, Vietnam was still seen as a clear winner in the US-China trade war.
The Ministry of Industry and Trade urged firms to strictly comply with rules of origin to avoid negative impacts on exports amid escalating trade defence measures.
Vietnam’s trade value this year was estimated to touch US$500 billion, two years after hitting the $400 billion threshold, a new milestone for the country that has been striving to improve its business climate and enhance international integration.
A number of foreign-invested firms have falsely labeled their products as originating from Vietnam to avoid trade safeguard instruments amid the US-China trade war.
Vietnam’s fisheries exports are unlikely to meet the US$10 billion target set by the Government for this year because of the multiple challenges like the US-China trade war, lack of demand and increasing competition.
Statistics on import-export and investment activities during the first few months of the year show that Vietnam did not see any positive effects from the US-China trade war as forecast by several US agencies and the press.
Twenty one member economies of the Asia – Pacific Economic Cooperation (APEC) forum have voiced their support for free trade in the context that global economy is being affected by the US-China trade war.
The business news website Bloomberg has run an article explaining why Vietnam could get the most benefits among Asian nations from the US-China trade conflict.
Improving material supply and proving product origin are ways to limit the impact of trade defence lawsuits amid the growing US-China trade war, according to insiders.
The average export price of Vietnamese rubber fell in tandem with the global price, affected by the escalating US-China trade war, according to the Agro Processing and Market Development Authority (AgroTrade) under the Ministry of Agriculture and Rural Development.
Vietnam’s key commodities, including apparel, leather, and footwear, are forecast to be hurt by the US-China trade war, which began on July 6 when the US imposed new tariffs on a majority of Chinese imports into the country, worth nearly US$34 billion.
The US-China trade friction is expected to help boost foreign direct investment in Vietnam, fast-tracking an already strong trend of foreign firms veering away from China, where rising costs are worrying investors.
As a country engaged in the development of the global value chain, Vietnam is likely to be affected by the US-China trade war, stated Minister of Industry and Trade Tran Tuan Anh.
The ongoing US-China trade war will greatly impact on the structure of the world economy in the future, causing damage but also generating indirect opportunities for countries where the economy relies heavily on agricultural production like Vietnam.
The trade war between the US and China is causing widespread concern over possible risks posed to the global economy, including that in Vietnam. However, the conflict can bring about indirect opportunities for Vietnam if the country knows how to grab hold of the situation, according to a local economist.
Foreign exchange rates are likely to rise strongly due to concerns that the US-China trade war may be escalating, said Director of the Vietnam Institute for Economic and Policy Research (VEPR) Nguyen Duc Thanh.