The country seems to be left untouched by the trade war woes.
Vietnam’s foreign direct investment (FDI) from January to August hit $11.25b which is a 9.2% YoY increase, the investment ministry said.
CNBC reported that the country’s geographical proximity to China paired with its historically strong political and economic links with Beijing has worked to its advantage, as H1 witnessed Vietnam’s fastest pace of economic growth whilst its Southeast Asian rivals are threatened by trade war risks and a stronger dollar.
Amidst the escalating trade tensions posed by the US trade tariffs, Vietnam has been a target for Chinese manufacturers that have started veering production away from the Mainland. Meanwhile, firms from South Korea, Japan, and Taiwan have already established their footholds in Vietnam.
"If the U.S. is unable to offset lower Chinese imports by reshoring manufacturing, then continued strong demand conditions in the U.S. will have to be met from alternative sources," State Street Global Markets head of Asia Pacific macro strategy Dwyfor Evans said. “Instead, I will import from Vietnam, so trade wars and protectionism actually end up as a positive for Vietnam."
According to Standard Chartered, FDI may hit up to US$15b.
Here’s more from CNBC.
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