A corner of Hanoi (Photo: VNA) Sydney (VNA) – The prolonging trade war between the US and China makes it easier forVietnam to continue its upward trajectory towardbecoming a developed economy, Bennett Murray recently wrote on the ‘ForeignPolicy’ paper.
Hecited the Vietnamese Ministry of Planning and Investment’s report as sayingthat the flow of foreign direct investment (FDI) into Vietnam surged by nearly70 percent year on year in the first five months of 2019, which was a recordsince 2015.
Accordingto him, much of that is thanks to US-China trade tensions that have left USfirms and others much less certain about investing in China.
WhileVietnam has been steadily luring investment from its northern neighbouringcountry for years, businesspeople themselves have mentioned the discord between Beijing and Washingtonas a reason for moving south, he said.
Vietnamwill likely continue to thrive as it attracts a greater share of high-valuemanufacturing, notably from Foxconn, a Taiwanese manufacturing giant, which mayeven begin producing iPhones in the country.
The article mentioned challengesfaced by Vietnam such as taxation system and inferior infrastructure. Demand forskilled workers will also outpace supply if growth moves too fast.
Theseproblems will not stop the rise of Vietnam, one of the world’sfastest-developing countries, the article said, adding that its infrastructurewill catch up and the quality of its labour force will increase.
Vietnam will also desperatelywant to attract hi-tech industries as part of the fourth Industrial Revolution, it said.
Thearticle also listed Vietnam’s advantages such as low labour costs, signatory tofree trade agreements with the Republic of Korea and the 10 remaining membersof the Comprehensive and Progressive Agreement for Trans-Pacific Partnership(CPTPP), including Japan, Canada, and Australia.-VNA
