Second, it is well positioned to take advantage of the trade war between the United States and China. In the first four months of this year, foreign investment increased by 50.4% compared to the same period in 2018 (China being the largest investor). There are many stories that are supported by survey data on the transfer of investment from China to Vietnam in order to avoid tariffs on U.S. exports. This has reinforced the optimism of vietnamese private sectors and, in the private sector, many Vietnamese companies support the Trump administration`s hard line toward China. The result was a misguided optimism that such an agreement with Vietnam was on the brink. For a wide variety of reasons, it wasn`t, and the idea evaporated. Two years later, there are no free trade negotiations with Vietnam or partners in Southeast Asia. There have been some preliminary discussions with the Philippines, but they need to move forward. While the trade war and pandemic have created enough incentives for production companies to relocate, Vietnam`s big challenge will now be to sustainably manage its growth. Nevertheless, Vietnam and 10 other countries acted without the United States and signed the Comprehensive Agreement for the Trans-Pacific Partnership (CPTPP) in March 2018. Despite the setback, bilateral trade between the United States and Vietnam has grown and analysts expect trade relations between the two countries to continue to flourish. First, the optimism and excitement generated by Vietnam`s economic prospects is being felt.
This is an important and rapidly growing market for members of the U.S. House. The country has experienced robust GDP growth in recent years, fuelled by a combination of foreign trade, significant investment flows and domestic economic reforms. This has not gone unnoticed; At a House dinner in honor of the Prime Minister during his 2017 visit, U.S. President-recipient Robert Lighthizer stressed the need to address the U.S. trade deficit with Vietnam, and was part of the meeting at subsequent high-level meetings. All of these factors have contributed, since the normalization of diplomatic relations, to strengthen trade between the two countries. Transshipment fraud – the process of re-labelling or minimal modifications of goods in a third country to avoid tariffs – has been a concern for U.S.
politicians for years regarding products made in China. The envelope data is unclear, but the evidence suggests that companies are avoiding the United States.