Trade war starts taking its toll on Vietnam’s economy
Vietnam’s exports in the January – July period grew 7.3% year-on-year, less than half the growth rate recorded in the same period last year, while FDI commitments as of June 20 totaled US$18.47 billion, down 9.2% year-on-year.
Contrary to previous reports that Vietnam would benefits from the escalating US – China trade war, recent data showed the contrary with a slowdown in export growth and narrower FDI inflow, according to Vu Tien Loc, president of the Vietnam Chamber of Commerce and Industry (VCCI).
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Vietnam’s exports in the January – July period reached US$122.72 billion, up 7.3% year-on-year, which was less than half the growth rate recorded in the same period last year, stated Loc. Meanwhile, FDI commitments as of June 20 totaled US$18.47 billion, down 9.2% year-on-year.
According to Loc, the trade war has caused a major part of Chinese goods to divert to other markets, competing directly with Vietnamese ones in its home ground and worldwide. On the other hand, the country’s exports to China have been on the decline as the latter prioritizes domestic consumption.
Overall, Vietnam’s exports to most markets in the world have decreased, with the exception of the US market. Regarding the issue, Loc warned government agencies to take cautious measures in addressing trade fraud activities regarding US-bound exports.
Loc expected local enterprises not to let their guard down, particularly in a global economy with growing uncertainties.
In a meeting in early August, Director of the Trade Remedies Authority of Vietnam Le Trieu Dung stated in the first seven months of 2019, some countries raised trade safeguard measures against Vietnamese products, averaging one case per month.
Most recently, the US Commerce Department decided to imposed import duties of more than 400% on US-bound corrosion-resistant steel and cold-rolled steel products that were actually produced in South Korea and Taiwan (China) before being shipped to Vietnam for minor processing.
In a regular press meeting held by the Vietnamese Ministry of Foreign Affairs on August 8, Spokeswoman Le Thi Thu Hang said Vietnam remains steadfast on preventing trade fraud activities both in the local market and for export activities, ensuring the lawful rights of Vietnamese enterprises and customers.
Recently, Prime Minister Nguyen Xuan Phuc has approved proposal to enhance state supervision against trade fraud activities, requesting joint efforts from government agencies to deal with such violations, Hang added.
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