Dr. Tran Ngoc Anh shares about opportunities and challenges for Vietnam amid the "trade war" storm - Photo: NHAT XUAN
This is the opinion of Dr. Tran Ngoc Anh, professor at Indiana University (USA), at the seminar "Update on global trade and digital technology trends" held on June 3 in Ho Chi Minh City, organized by the City's Investment and Trade Promotion Center (ITPC).
Opportunities to move up in the global value chain
According to Dr. Ngoc Anh, the US administration's tough stance on China - especially in the high-tech sector - is fueling a wave of supply chain shifts out of China.
In that context, Vietnam is considered one of the top alternative destinations, as corporations seek new partners to diversify production.
"High-tech processes that bring high added value are shifting. This is an opportunity for Vietnam to escape its traditional processing role and move towards participating in higher segments in the value chain," said Mr. Ngoc Anh.
Although acknowledging the risk that Vietnam may face higher tariffs from the US, Dr. Ngoc Anh said that this tariff is "still lower than China's", helping Vietnam maintain a relative competitive advantage in the export market.
Besides, Mr. Ngoc Anh pointed out the limitation in the US bringing the supply chain domestically: "The US lacks production infrastructure and labor costs in the US are too high.
Basic goods such as toys, wood, and clothing are also difficult to produce domestically due to the high risk of inflation."
However, he warned that bringing goods into the US market is becoming more and more complicated due to strict legal procedures.
Therefore, Vietnamese enterprises need to cooperate closely with industry associations and specialized legal units to advise and support the export process.
Ms. Cao Thi Phi Van - Deputy Director of the City's Investment and Trade Promotion Center (ITPC) - delivered the opening speech at the workshop - Photo: NHAT XUAN
Move from passive to proactive adaptation
Sharing the same view, Mr. Vu Tu Thanh - Deputy Executive Director of ASEAN region, Chief Representative of Vietnam of the US-ASEAN Business Council (USABC) - commented that unlike previous periods, this time Vietnam is no longer observing, but has switched to being proactive in responding to fluctuations from US trade policy.
"Since mid-2024, Vietnam has developed response scenarios if Mr. Trump is re-elected, and has proactively conveyed the message of mutually beneficial cooperation," Mr. Thanh said.
With a high economic openness and 17 signed free trade agreements, Vietnam has a solid foundation to expand exports, attract FDI and strengthen global value chain connectivity.
A notable sign, according to Mr. Thanh, is that the US Customs and Border Protection (CBP) opened its first permanent office in Vietnam. Previously, CBP only had offices in three locations in East Asia: South Korea, Bangkok and Singapore.
"This is an unprecedented move, reflecting Vietnam's increasingly important role in the global trade chain, as well as the Vietnam-US bilateral economic relationship," Mr. Thanh emphasized.
He also warned that CBP is stepping up investigations and will apply strict sanctions against acts of trade fraud, especially with goods originating from China but "disguised" as being of Vietnamese origin.
Faced with this risk, Mr. Thanh emphasized that Vietnamese enterprises have begun to apply risk control measures: from completing certificates of origin, improving quality standards to improving traceability.
Source: https://tuoitre.vn/co-hoi-don-song-dau-tu-moi-cho-viet-nam-20250603180834261.htm
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