Trade War

Vietnamese customs authorities are keeping close watch on investment shift from foreign countries, especially China, into Vietnam to prevent product origin fraud and illegal transshipment.

This is the second consecutive year that Vietnam’s economy expands over 7%, following a 10-year high GDP growth of 7.08% in 2018.

Vietnam is getting into a position where investment and manufacturing are becoming much easier to establish, said a Maersk executive.

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.

The neighboring country remained Vietnam’s leading supplier of steel over the last three years, with the quantity and value growing at two-digit growth rates annually.

Tariffs were a major reason behind the decline in US imports from China.

An average GDP growth rate of 7% in the 2021 – 2025 period would translate in income per capita of US$4,688, taking Vietnam to the bracket of high-middle income country.

The US-China trade war may be behind such a record figure.

While the recent trade tensions have merely accelerated the movement of supply chains to Vietnam, they were not the trigger.

There could be another wave of investment capital to Vietnam in 2020 in anticipation of the enactment of the EU – Vietnam Free Trade Agreement, as well as impacts of the US – China trade war, leading to a surge in imports of equipment, machinery and input materials, said Minister of Industry and Trade Tran Tuan Anh.