Vietnam is urged to remain cautious as China may route their US-bound products through the country to evade existing tariffs, according to Nguyen Thi Thu Trang, director of the WTO Integration Center under the Vietnam Chamber of Commerce and Industry (VCCI). 
Illustrative photo.
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Following the ongoing trade friction between the US and China, Vietnam could face a wave of Chinese goods flooding its domestic market, not to mention Vietnamese goods exporting to China being under fierce competition from local goods, Trang said in a conference on November 23.
The growing capital inflow from China to Vietnam may bring more harm than good, as Vietnam could face the risk of trade frauds and Chinese investors aiming at Vietnam as an indirect route to the US.
Ho Duc Lam, chairman of Vietnam Plastic Association, shared the same view, saying that local plastic companies are under negative impacts having to compete directly with Chinese enterprises.
Lam referred to Chinese recent investments in Vietnam in a bid to exporting goods to the US.
Economist Tran Dinh Thien said the trade friction would bring both opportunities and challenges for Vietnam, so the important issue would be how Vietnamese enterprises grasp those opportunities.
Thien added that cheap Chinese goods would turn to Vietnamese market as the trade war drags on, so domestic enterprises have to be prepared and minimize any impact that go along with it.
Moreover, opportunities would arise when Chinese exports to the US are declining, but the question is whether Vietnamese goods are able to penetrate the US market.
According to Thien, after 30 years of reform, Vietnam’s private sector has not yet fully realized its potential, and contributes 10% of the GDP, indicating a major shortcoming of Vietnam economic structure.
The trade war could cause negative impacts on Vietnamese economy in long term, requiring the country to have new strategy for development, particularly when global investors pulling money out of emerging market, including Vietnam, Thien added.
The move would destabilize the global trade and investment environments, as well as the world’s supply chain.
Ho Duc Lam said the government should consider impose import tariffs on potential dumping products.
At the same time, it is important to stop issuing investment and business licenses to projects which could not ensure its two thirds of production chain in Vietnam.
Moreover, Vietnam should speed up new trade agreements with Europe and other countries, in turn mitigating risks from its dependence on the US and Chinese markets.
The growing capital inflow from China to Vietnam may bring more harm than good, as Vietnam could face the risk of trade frauds and Chinese investors aiming at Vietnam as an indirect route to the US.
Ho Duc Lam, chairman of Vietnam Plastic Association, shared the same view, saying that local plastic companies are under negative impacts having to compete directly with Chinese enterprises.
Lam referred to Chinese recent investments in Vietnam in a bid to exporting goods to the US.
Economist Tran Dinh Thien said the trade friction would bring both opportunities and challenges for Vietnam, so the important issue would be how Vietnamese enterprises grasp those opportunities.
Thien added that cheap Chinese goods would turn to Vietnamese market as the trade war drags on, so domestic enterprises have to be prepared and minimize any impact that go along with it.
Moreover, opportunities would arise when Chinese exports to the US are declining, but the question is whether Vietnamese goods are able to penetrate the US market.
According to Thien, after 30 years of reform, Vietnam’s private sector has not yet fully realized its potential, and contributes 10% of the GDP, indicating a major shortcoming of Vietnam economic structure.
The trade war could cause negative impacts on Vietnamese economy in long term, requiring the country to have new strategy for development, particularly when global investors pulling money out of emerging market, including Vietnam, Thien added.
The move would destabilize the global trade and investment environments, as well as the world’s supply chain.
Ho Duc Lam said the government should consider impose import tariffs on potential dumping products.
At the same time, it is important to stop issuing investment and business licenses to projects which could not ensure its two thirds of production chain in Vietnam.
Moreover, Vietnam should speed up new trade agreements with Europe and other countries, in turn mitigating risks from its dependence on the US and Chinese markets.
