While China and the United States have agreed to a trade truce in order to negotiate a deal that will end the trade war, some market experts believe that the trade war will continue for at least a foreseeable future. Picking up from this analysis, Vietnam is pitching itself to possible investors as a safe haven for them to put their money into.
Amidst the China-United States trade war, Vietnamese Prime Minister Nguyen Xuan Phuc is touring the world hoping to entice investors into pouring investments into his country. Among the notable points that Prime Minister Phuc have highlighted is the fact that Vietnam's economy is currently experiencing a historic boost. The Prime Minister also said that Vietnam has adopted business-friendly policies and that the country's top legislative body is controlled by a Communist party whose leader is a free-trader.
In an interview with Bloomberg TV, Prime Minister Phuc said, "We are ready to grab the opportunity." He said this a few days before flying to Davos, Switzerland to attend the World Economic Forum.
Despite the ruckus brought upon by the trade war into the Southeast Asian region, Vietnam is ignoring the negative trade impacts and instead focus on repositioning itself as a safe alternative to the rather difficult business aura in the nearby region. As China and the United States throw around tariffs on various goods, manufacturers are getting skeptical as they don't want their businesses to be embroiled in the ongoing trade fracas.
Vietnam has signed quite a number of free trade agreements with various countries. Like China, and most of Southeast Asia, Vietnam also has a high number of workers that can be tapped for a relative fraction of the price. Vietnam's close proximity to China also makes it a viable alternative to the Asian superpower.
In a statement acquired by Business Times, Prime Minister Phuc said, "We are trying to increase exports in both quantity and quality of our products, especially in which we have advantages, such as seafood, commodities, footwear, and electronics.
Despite the efforts of the Prime Minister, Vietnam has yet to feel the influx of new investors and companies coming into the country from China. Some observers have also noted that while Vietnam is a viable alternative, the country still has a lot to improve before being able to woo companies to shift into the country.
One of the most glaring problems in Vietnam is the lack of adequate infrastructure and skilled workers. The lack of skilled workers means that the country will have quite a hard time attracting companies that require advanced training.
