Is Trump tariff deal really a win for Vietnam – or a way of punishing China? | Vietnam

The news that Vietnam would be the second nation that reached the first tariff agreement with Washington increased manufacturers with a major footprint in clothing companies and the country with optimism.

Only after hours, they fell sharply because it was understood that the devil would be detailed and the most striking part of the agreement could actually target China, Vietnam’s powerful neighbor.

Vietnam, who fled 46% of the threatened tax threatened in April, will be placed with a 20% tariff for many goods and will be placed in zero tariffs.

However, a 40% tariff for so-called transfers will remain-a provision for Chinese companies accused of avoiding US tariffs through Vietnam or elsewhere.

Businesses are concerned that if the “transmission ğı is a politicized term and the US defines it very much, many goods can be unjustly targeted.

“Vietnam is a center of manufacturing-and as a center, you take input from other countries and make value-added things in Vietnam, and then you export to other countries, Dr says Dr. Nguyen Khac Giang.

It is not realistic to expect most of Vietnam goods other than agricultural products to be completely in Vietnam. What should be decided is this: What part of a product should be?

How to define the scope of the agreement – and how to implement this policy – continues to be seen, but may have significant effects on global trade and tensions with China.

Stephen Olson, a former US commercial negotiator, said, “One lesson for other countries is the US planning to use these agreements on China to put pressure on China,” he said.

Vietnam, a explosive production center, punished the tariffs placed in China, and benefited during the latest Trump administration, encouraging many Chinese companies to change supply chains.

However, this caused the surplus trade of the United States and Vietnam, and drew the claims that the United States and Vietnam were incorrectly for Chinese companies that want access to the US market.

Yongqian, a spokesman for the Chinese Trade Ministry, responded to the US-Vietname agreement on Thursday: iz We are strictly against any party that reaches an agreement at the expense of China’s interests.

Vietnam’s manufacturing industry is closely intertwined with both the US and China. The US exports constituted 30% of Vietnam’s GDP, while China is the best source of imports of Vietnam, based on raw materials used to do everything from shoes to furniture and electronics.

Vietnam, especially in electronic sectors, is not alone to rely on China for such components. “[China] It enters global supply chains, Dan says Dan Shira and Assocates International Business Advisor Dan Martin.

If companies are expected to prove the origin of all goods, this can bring an undesirable burden in sectors such as textiles where margins are low, Martin says.

However, it continues to see whether the higher 40% tariff will be applied actively in transfers. If Martin encourages US policy suppliers to build a store in Vietnam, Vietnam can also benefit.

Analysts, businesses pause decisions until a clearer picture emerges.

Policy makers in Hanoi remain on a diplomatic rope. Vietnam has long been trying to balance relations with Washington and Beijing. He sees the USA not only a key export market, but as a security partner who serves as a balance against China’s supplies.

But if Beijing thinks that Hanoi helps Washington to restrict him, this faces the risk of antagonizing Vietnam’s northern neighbor. Peter Mumford, President of the Southeast Asian Application in the Eurasian Group, can lead to economic measures from China or pressure on the controversial South China Sea, an important flare point in the region.

As things stop, Beijing may even have given Beijing a rude indicator of the steps that he had to take to secure a US trade agreement. ”

Vietnam has made an effort to show goodwill to China in recent months and at the same time establishing Trump.

Trump will open Vietnam’s market to US goods for a 20 % tariff ratio. “US -made SUVs, which are very successful in the United States, will be a great contribution to various product lines in Vietnam, Tr Trump said.

However, in Vietnam, where the city streets are famous for millions of motorcycles, the automobile market remains small.