At present, Sino-US trade frictions are in a critical period. Foreign media have found that Vietnam is trying to gain the benefit of the fisherman.
It has been reported that Vietnamese Prime Minister Nguyen Chunfu took the opportunity to attend the World Economic Forum meeting in Davos to introduce many good conditions for investment in Vietnam, including a fast-growing economy and friendly policies towards enterprises.
Information Picture: On November 4, 2018, Vietnamese Prime Minister Nguyen Chunfu arrived in Shanghai to attend the first China International Import Expo. (Xinhua News Agency)
Some analysts believe that Vietnam has this idea to be expected. Sino-US economic and trade frictions have led to higher tariffs on some of Chinas exports to the United States. China is at the core of processing and manufacturing in the global industrial chain. Multinational enterprises in many countries carry out global production layout, process and assemble products in China and then export them to the United States. Especially, the middle and low-end manufacturing and labor-intensive multinational enterprises have the consideration of avoiding the risk of trade uncertainty. By looking for new emerging markets, we can reduce production costs and tariff risks, and then get more benefits from them. Vietnam has just seen this part of the demand and opportunity, hoping to benefit from it and speed up the pace of attracting investment.
Sun Lipeng, a scholar of the Chinese Academy of Modern International Relations, told Reference News Network that Vietnams economic development refers to the China Model, but it is still in the early stage of industrialization. He also hopes to undertake this part of the industry, create more employment opportunities, promote domestic economic development, and occupy a place in the international division of labor and the layout of the global industrial chain.
However, public opinion has also noted that Vietnams own economy is facing some tests, which may affect its pace of attracting global manufacturers. Reuters reported that Vietnams economy is facing severe challenges, including inadequate infrastructure and a lack of skilled workers, which makes it difficult for Vietnam to attract foreign manufacturing companies outside garment factories to invest.
_Vietnam Street (Visual China)
Reported that Ruan Chunfu also revealed that Vietnam has not yet seen a large influx of foreign companies from China into Vietnam.
In addition, the global economic environment, especially in Asia, is deteriorating due to the trade war provoked by the Trump Government. Taiwans China Times reported on January 22 that trade wars and weak world economic growth had depressed export demand. This situation poses a threat to an economy like Vietnam. Vietnams trade volume is about twice that of Vietnams GDP, and its ratio of foreign trade volume to GDP is higher in Asia than in Singapore.
It can be said that, under the influence of various factors, Vietnams desire is good, but in the short and medium term, it may not see the trend of harvesting profits by sitting.
Sun Lipeng analysis, on the one hand, China is still an attractive investment destination in the world. China has the worlds most complete industrial system, perfect infrastructure, abundant high-quality labor force, open and friendly business environment and so on, which are difficult for emerging markets such as Vietnam to have in the short term. On the other hand, Chinas development potential is huge and full of unlimited business opportunities. In 2019, Chinas total social consumption and retail sales are expected to surpass the United States and become the worlds largest consumer market. Foreign-funded enterprises will still regard China as the main investment destination. In addition, with the development of economic globalization, the global industrial chain layout and international division of labor are deepening day by day. For any enterprise in the industrial chain, adjusting the global production layout will increase risks and costs, and they will also carefully analyze the pros and cons, and the adjustment cycle usually takes 3-5 years. As a result, the trend of a large number of industries moving from China to emerging Asian markets such as Vietnam is hard to see in the short and medium term at least.
Source: Reference Message Network Responsible Editor: He Yufang_NN5632