Chinese and South Korean partners in June unexpectedly announced the cancellation of contracts signed with Zara, a yarn producer in Dong Nai province.
The expansion of Foxconn's investment in Vietnam may lead to the eventual production of iPhones in the country.
Institutions, foreign and domestic, have confidence in the stability of the dong, despite the depreciation of many local currencies in ASEAN.
The Prime Minister has given instructions to fight against origin fraud and illegal transshipment to protect brands and the prestige of Vietnamese goods.
Concerns about the US-China trade talks have lifted for now, and investors are turning their attention to third quarter earnings reports and how listed companies will perform in the last three months of the year.
Vietnam is predicted to obtain the highest GDP growth rate in the region, but it is exposed to risks from the effects of global economic tensions.
Instead of getting benefits from the US-China trade war as predicted, Vietnam’s garment companies are meeting difficulties as US importers are reconsidering business with Vietnam’s exporters.
The US-China trade war is giving opportunities to Vietnam to diversify material supply sources, increase imports from the US to reduce the trade surplus with the country, and reduce the trade deficit with China.
Applauding the State Bank of Vietnam’s move to cut the prime interest rate, experts said the 0.25 percentage point cut, however, is relatively modest.
Building a reasonable growth scenario and finding out ways to achieve the goal is how that Vietnam can escape the middle-income trap.
Will Vietnam be chosen as the destination for investors who plan to move out of China?
One of the biggest risks posed by the US-China trade war is the flood of cheap Chinese products into Vietnam.
Chinese FDI is rushing into Vietnam, bringing huge capital. However, Vietnam has been told to be careful about using this capital.
Foxconn (Taiwan), TLC and Lenovo (China), Hanwa (South Korea) and Yokowo (Japan) are relocating their factories to Vietnam as a shelter from the ‘storm’ of the US-China trade war.
Businesses are optimistic about the prospects of the two largest export markets, the US and China, after the Chinese yuan for the first time fell from the ‘red line’ since 2008 to 6,9225 yuan per dollar.
Asked about influence of the US-China trade war on their business performance, Vietnamese enterprises said they can see opportunities, but find it difficult to grab them.