The ancient strategy of “Divide and Conquer” remains relevant today. Whether in war or competition, this strategy is a powerful tool. In this article, we will explore how Vietnam benefits from this strategy and conquers globalization to win the US-China trade war. And how you can invest your business in Vietnam.
US – China Trade War History
The China–United States trade war is an ongoing economic conflict between China and the United States. In January 2018, President Donald Trump began setting tariffs and other trade barriers on China. The goal is to forcing it to make changes to “unfair trade practices”. Those unfair practices can be explained by the fact that China subsidies its companies to export goods as low as possible in terms of price. On the other hand, China is heavily taxing imports or even refusing to open the market to foreign companies.
Why Is Vietnam Winning This Trade War?
Studies show that Vietnam has been the biggest beneficiary of the trade diversion, gaining 7.9% of its GDP from increased exports to both China and the U.S. Vietnam’s gains in the agricultural sector result from the trade war’s impact on Chinese agriculture. U.S. tariffs on Chinese agricultural products have increased demand for Vietnamese agricultural products. Fruits, vegetables, and seafood top the list of those products. In addition, Vietnam has become the world’s largest exporter of rice, coffee, and pepper.
However, not everything is rosy. Despite being a winner in this trade war, Vietnam also faces challenges. Check out this video where Attorney Ken Duong discusses the challenges and advantages that attract foreign investors to Vietnam.
Learn more about Investing in Vietnam
As a foreigner investing in Vietnam, you can obtain a DT4 investor visa to stay in Vietnam long-term. We have experience investing in everything from real estate to convenience store chains and even F&B areas. If you want to know how to invest in Vietnam, contact us for more information.
We made many videos about doing Business in Vietnam, from retail market to real estate and even how to invest in Vietnam! Check out our YouTube channel for more Vietnam news.
