US-China trade tensions cool down: Vietnamese businesses need to take advantage and do this immediately

Prof. Dr. Hoang Van Cuong, member of the National Assembly's Economic and Financial Committee, said that the agreement between the US and China, although temporary, will still have a positive impact on the global economy, including Vietnam.

Specifically, according to Mr. Cuong, the cooling of the US-China trade tensions will help reduce the risk to the circulation of goods in the world , thereby easing the pressure of the global economic downturn. And when the world economy is brighter, Vietnam's import and export activities will also be more positive.

In addition, the pressure from Chinese goods flooding into neighboring countries will also decrease, helping domestic goods benefit from less pressure to compete with Chinese goods. This helps businesses maintain the domestic market better.

“When the US-China relationship is temporarily balanced, the consumption of goods in these countries will also be more stable, contributing significantly to stabilizing the economies of these countries. And Vietnamese goods exported to these countries will not have to suffer many fluctuations. Thus, it is clear that there will be a positive impact on both the world economy and the Vietnamese economy,” said Mr. Cuong.

Experts believe that the cooling of US-China trade tensions will help stabilize the world economy, making it easier for Vietnamese goods to import and export.

In addition, according to Mr. Cuong, stable import and export will reduce pressure on foreign currency imbalance, limit fluctuations in currency values ​​in countries with which Vietnam has import and export relations, thereby reducing pressure on exchange rates.

Sharing the same view, expert Tran Hoang Ngan emphasized: China and the US are two large economies, which can be said to determine 50% of the world's GDP. If these two countries fall into a trade conflict, it will not only weaken the economies of the two countries but also affect the global economy and Vietnam will not be an exception.

On the contrary, if the trade relationship between the two countries is reduced as it is now, it will contribute to reducing the world economic recession. This will facilitate and support the Vietnamese economy - an open economy, heavily dependent on trade partners.

" It must also be said that both China and the US are two major trading partners of Vietnam. Therefore, when tensions between these two partners ease, it will create many advantages for Vietnam's economy, " said Mr. Ngan.

National Assembly Delegate Nguyen Quang Huan ( Binh Duong delegation) - Vice President of the Vietnam Association of Private Entrepreneurs - emphasized: The most favorable thing for Vietnam is to take advantage of this balanced situation to turn danger into opportunity.

" In essence, Vietnam is an open economy, so the more stable the world economy is, the more Vietnam benefits. But when the two major economies, the US and China, close their doors and block them with tariff barriers, Vietnam will be at a disadvantage. In the midst of competition between major countries, we cannot please both sides. Therefore, in my opinion, the reduction of tensions between the US and China is a good sign, " said Mr. Huan.

According to Mr. Huan, during this "silence", Vietnam must take advantage of the time and opportunity to restructure the market. Businesses must diversify their partners and not just focus on potential markets that carry unforeseen risks.

Vietnam also needs to restructure domestic production and increase domestic consumption. Currently, sustainable development requires increasing domestic consumption, especially in emerging economies like Vietnam, where the average income ratio is increasing. Therefore, it is necessary to encourage domestic consumption and take advantage of the Vietnamese market of 100 million people.

In addition, simple export structure products that are easily competitive should be reduced, and high scientific and technological content should be added to create a difference. Otherwise, when countries erect tariff barriers and equate goods from other countries, we will be at a disadvantage.

In addition to the direct impacts, Mr. Mac Quoc Anh - General Secretary of the Hanoi Association of Small and Medium Enterprises - also pointed out the indirect impacts on Vietnam's economy. These are the developments in the US-China and US-UK trade relations, which are signs that the US does not want to prolong the trade war but instead seeks agreements that are beneficial to both sides. This helps Vietnam study reasonable negotiation policies to reach the most effective agreement in the coming time.

Economist Nguyen Duc Kien also shares the same opinion. He said: “ From the above trade developments, it can be seen that nothing is impossible to negotiate. We need to have a reasonable plan, raise issues and conditions that benefit both sides, so that Vietnam will certainly have appropriate voices with the US in the negotiation process .”

In a joint statement, Beijing and Washington said they would suspend tariffs for 90 days to allow for negotiations.

Under the agreement, the US and China will permanently reduce reciprocal tariffs on each other from 125% to 34%.

With the remaining 34% tax, the two sides will temporarily suspend another 24% for the next 90 days. Thus, for now, the reciprocal tax between the US and China will be only 10%.

However, the Trump administration imposed a 20% tariff on Chinese goods at the beginning of its term and this tax has not been changed. Therefore, the total actual tariff Washington temporarily imposed on Beijing is 30%.

PV Group

Source: https://vtcnews.vn/cang-thang-thuong-mai-my-trung-ha-nhiet-dn-viet-can-tan-dung-lam-ngay-viec-nay-ar942880.html