VN exporters could benefit from US-China spat
Thursday, October 25,2018AsemconnectVietnam - With the US-China trade war escalating, Viet Nam may be able to increase exports of items like furniture, agricultural products, and leather products to the US, a conference heard in HCM City on Wednesday.
In retaliation, China has decided to impose taxes on about $60 billion worth of imports from the US.
Nguyen Xuan Thanh, development director at Fulbright University Viet Nam, said there would be shortages when China’s exports to the US dry up, and Vietnamese firms could take advantage of this to boost exports to that country.
Firstly, exports of Chinese fisheries products are expected to reduce by $700 million, and Viet Nam can step in and fill the breach, especially in the case of shrimp, according to Thanh.
Secondly, China is the leading exporter of wood products to the US, with its exports last year exceeding $32 billion. The new tariffs are expected to reduce shipments by $7 billion, he said.
Thirdly, China sells $7 billion worth of leather products to the US, mainly suitcases and handbags, and according to the World Bank, exports could fall by $1.9 billion, offering an opportunity to Vietnamese firms, he said.
Tran Du Lich, deputy chairman of the Viet Nam International Arbitration Centre, said: “The question is how to grasp that opportunity.”
Other countries with similar products as Viet Nam would also want to take advantage of this opportunity to boost exports to the US, he pointed out.
He said Vietnamese firms should enhance product quality and competitiveness, promote trade and take advantage of free trade agreements.
Negative impact
Lich said: “Vietnamese firms should stay alert and not get involved with this because the US, if it detects this, might impose taxes which would harm not only that industry but also the economy itself.”
The US had already slapped higher import tariffs on China, the EU and Mexico, while Japan was negotiating with it to ward off tariffs on cars, he said.
If the US imposed punitive tariffs, the impact on the Vietnamese economy would be greater than that on the EU, China or Mexico since Viet Nam has an “open” economy whose exports are 200 per cent of its GDP, he said.
Delegates said to mitigate the risk, authorities should closely monitor export products for origin to prevent fraud with respect to customs declarations.
Another challenge was that Chinese products previously destined for the US could now head to Southeast Asia, including Viet Nam, putting pressure on Vietnamese firms, he said.
Lich said the Government should focus on developing distribution systems since whoever dominates distribution will dominate the production system.
The trade war would lead to manufacturers relocating their production bases from China to Southeast Asia, especially Viet Nam and Indonesia, he said.
But Viet Nam had two problems in competing with Indonesia, poor transport links and high logistics costs, he said, adding that the Government should focus on completing infrastructure in certain industrial parks instead of spreading its investment too thin, resulting in inadequate infrastructure.
DAILY: Vietnamese coffee prices remained unchanged on April 10
Rubber industry needs better grip on competitiveness in int’l market
Vietnam eyes 30 billion USD in food, food stuff exports annually
Vietnam exports 1.7 million tonnes of rice in Q1
Blockchain facilitates international trade
Vietnam's coffee exports slow in Q1 as domestic prices rise
Vietnamese businesses updated on India’s new foreign trade policy
Reference exchange rate up 2 VND on April 7
Bac Giang hastens public investment projects, industrial parks
Bac Giang province boosts farm produce sales
Resolution on oil, gas sector to fuel Ba Ria - Vung Tau’s growth
Vietnam eyes 30 billion USD in food, food stuff exports annually
Vietnam exports 1.7 million tonnes of rice in Q1
DAILY: Vietnamese pepper prices remained unchanged on April 7
Plan on implementing Decision No. 327/QD-TTG dated March ...
Concretize viewpoints, objectives, tasks and solutions of the plan in accordance with practical conditions of the locality, associating ...Plan on implementing national environmental protection ...
Implementation plan of marine aquaculture development ...
Program on conservation and development of Vietnamese ...
Plan on improving quality of human resources to 2025 and ...
Efforts taken to turn culinary culture into national ...
The Vietnam Cuisine Culture Association (VCCA) is taking steps to implement a project to build and develop Vietnamese culinary culture ...Vietnamese cuisine making a name for itself with ...
Vietnam advance to next round of AFC U20 Women’s Asian Cup
Cultural tourism and traditional values promoted through ...