Vietnam may come under Trump’s radar
Due to becoming biggest beneficiary of trade war between the US and China, Vietnam has come in limelight ’s recent fame as a big winner of the U.S.-China trade war, bringing it undesired attention from President Donald Trump.
Vietnam has benefited from getting orders in exports and foreign investment from the Chinese manufacturers to relocate their production in Vietnam to avoid higher U.S. tariffs. Many are claiming that Chinese exporters are routing their products via Vietnam and putting fake labels on their products to bypass the tariffs.
Trump is already keeping close eye on the country and is in discussions with Vietnam. In May, the U.S. Treasury added Vietnam to a watchlist of countries it’s monitoring for possible currency manipulation.
Greater scrutiny from the Trump administration could create ripples in trade-dependent Vietnam. Its trade surplus with the U.S. has exceeded $20 billion since 2014, reaching $39.5 billion last year for the highest in records going back to 1990.
There is a risk to Vietnam as thirty percent of Vietnam’s imports are Chinese material and components used for manufacturing in final products that are then exported. Vietnam is looking at imposing higher penalties on Chinese goods transferred to the country and illegally relabeled as made-in-Vietnam for export to the U.S.