HANOI – US-China trade war shows no signs to end. Hence most of the investors are moving to Vietnam due to low-costs in the manufacturing sector. The US president Donald Trump hints to impose more tariffs on China which could lead to more manufacturing investment in Vietnam.
Apart from the rise of tariffs, the increasing labor costs in China is another factor due to which investors are preferring Vietnam for manufacturing investments. According to GS-JJ.com spokesperson, investment in the manufacturing sector in Vietnam is a very good idea. Since the last year, there is a dramatic increase in the labor-intensive manufacturing sector in Vietnam. About 81% increase in newly registered investments, 215% surge in capital contributions have been noticed since April this year, according to government data. And those who are waiting for the situation to improve may face more challenges after moving to Vietnam in the coming time as there is not much space left in this sector in Vietnam. Also, US-export has also increased by 29% in 2019 in Vietnam compared to the previous year. However, companies such as GS-JJ.com, which supply custom patches no minimum quantity lapel pins are not affected much due to US-China trade war.
As the US has declared to increase tariffs on US$200 billion of goods by 15%, the trade war between the two countries is going to intensify more. Hence, US export and the manufacturing investment are going to increase in the third and fourth quarter of 2019. However, Vietnam’s infrastructure networks, local suppliers and labor pools are going to reach its limits due to an increase in the manufacturing investment in the areas of Ho Chi Minh City and Hanoi.
