STRENGTHEN INVESTMENT IN SEAPORTS, WILL VIETNAM BENEFIT FROM A BIG TRADE WAR?
Vietnam currently lacks US $ 4 billion for seaport development. Container shipping capacity needs to double the growth rate of 10 - 12% of the last decade to meet increasing demand.
Known by many as the economy that truly benefited from the U.S.-China trade war, Vietnam now needs to try to ensure that its benefits do not disappear quickly, according to the article. just published by Bloomberg. As more manufacturers leave China, Vietnam has done quite a good job to catch up on this wave. But Vietnam is at risk of facing the challenge arising from the ongoing trade conflict: Do not put all your eggs in one basket.
In the footwear sector, Eclat Textile, a supplier of big names such as Nike, left China in 2016 because managers could not find enough manpower and instead shifted production to Vietnam. Now, as the trade war is getting tougher, the company also realizes it is taking more risks. In a recent interview, the company's president, Mr. Hung Cheng-hai, said: “Given the current international situation, the most important thing is diversification. Now more than 50% of our products are made in Vietnam, so we can say that we are not diversifying enough. ” Vietnam is assessed to bear many risks when the US side is seeking to readjust a series of previous commitments with free trade. Vietnam has been avoiding President Trump's "bullets" for some time thanks to the fact that Vietnam did well in the role of the host of the Trump-Kim summit in February 2019. During President Trump's visit to Vietnam, the Vietnamese side signed many billion-dollar contracts and brought a trade surplus for the US - an important point in President Trump's foreign policy.By May 2019, they didn't seem to be trying hard enough. The US Treasury Department has taken tough steps with Vietnam on monetary issues. By July 2019, the US imposed more than 400% tariff on steel imported from Vietnam by saying that it originated from Taiwan and South Korea. In the first half of 2019, Vietnam's trade surplus with the US increased 39% to US $ 25.3 billion. Vietnamese officials say they are trying to reduce that trade surplus. But local businesses have a hard time: As American demand for Vietnamese solar panels has increased, this has often been considered good news but now worries officials, they are afraid to respond. angry application from the White House. A country with a fast-growing manufacturing industry like Vietnam certainly faces many risks, including the port's handling capacity as well as the quality of its human resources. Container shipping capacity needs to double the growth rate of 10 - 12% of the past decade to meet the increasing demand, according to calculations by Bloomberg Intelligence. Vietnam currently lacks US $ 4 billion for seaport development. So far there have not been enough large investment contracts for this segment. Even with many other economies in East Asia including China and South Korea, overcoming these obstacles is not easy. For Vietnam and many other latecomers, US protectionist policies mean stability will be extremely difficult to obtain.