US-China trade tensions 'escalate': Opportunities for Vietnamese businesses

US President Donald Trump. (Source: AFP/VNA)

After the U.S. decided on May 10 to raise tariffs from 10 percent to 25 percent on 5,700 categories of goods worth $200 billion from China, Beijing responded by raising tariffs on $60 billion of U.S. imports since June 1 – something that could push the country 'deep into the trade war' with Washington.

According to expert Jake Parker of the U.S.-China Business Council, China's tariff hikes will receive a lot of support in China but will also further weaken the confidence of foreign businesses.

Jacob Funk Kirkegaard of the Peterson Institute for International Economics (PIIE) warned that if China takes this measure, the US-China trade war will "escalate" and could lead to serious consequences.

Investing in the US is a good decision for Vietnamese businesses

Speaking to the press at the White House on May 14, US President Donald Trump said that US consumers can buy goods from Vietnam and many other countries without tariffs in the context of the tariff war between the US and China escalate.

President Trump said he had imposed a 25 percent tariff on $200 billion worth of Chinese goods and was considering raising tariffs on another $325 billion of Chinese goods imported into the United States.

"The time to buy Chinese goods will be gone" and if "they don't want to pay taxes," the U.S. can buy goods from a country that is not subject to tariffs, such as Vietnam and many others. Mr. Trump declared.

If the U.S. imposes tariffs on this list, almost all Chinese exports to the U.S. will be subject to punitive tariffs and become expensive, and this will be an opportunity for many countries around the world. especially countries with strengths in the fields of production and agriculture.

The next positive move for Vietnamese businesses is the US Ambassador to Vietnam, Mr. Daniel J. Kritenbrink who has just said that investing in the US is one of the best decisions that Vietnamese companies should consider.

According to Voice of America, U.S. economic officials have held many events in the past year in Hanoi and Ho Chi Minh City to mobilize Vietnamese businesses to invest in the United States.

Vietnam-US Business Summit 2019, May 10. Photo: Vu Sinh/VNA

"Investing in the U.S. is one of the best decisions Vietnamese companies can make, especially as Vietnam's economy continues to grow rapidly. As companies benefit from this growth, they should look to expand into new markets and it is natural to consider that one of Vietnam's largest export markets is the US market." Daniel J. Kritenbrink said.

Voice of America stated Vietnam's view that it would be a great achievement if domestic companies reached a new level - that is, not merely sending goods abroad but becoming setting up representative offices operating abroad. In which, FPT and Viettel are 2 typical examples.

The station believes that by reaching out to foreign countries, Vietnamese companies hope not only to strengthen the country's economy in the face of external trade tensions but also to help build a national brand in the country.all over the world.

Previously, some newspapers in Asia said that the tariff barriers erected by Mr. Trump are not beneficial to the United States, nor are they beneficial to China, but can benefit emerging countries. including Vietnam.

Major brands such as Adidas, Nike, Brooks Running, Apple,... targeting Vietnam because besides the advantage of dense Free Trade Agreements (FTAs), Vietnam is providing extremely competitive labor and skills, while manufacturing in China is increasingly expensive.