Vietnam stays attractive to foreign investors amid trade war: expert
Vietnam stays attractive to foreign investors amid trade war: economist
Vietnam is the biggest beneficiary in the shift of the investment flow from China amidst the Sino-American trade war, according to Maybank Kim Eng senior economist Chua Hak Bin.
Workers produce motorized vehicles' spare parts at a factory of the Japanese-invested Keihin Vietnam Co. Ltd in Thang Long II Industrial Park in Yen My district, Hung Yen province (Photo: VNA)
Hanoi (VNA) – Vietnam is the biggest beneficiary in theshift of the investment flow from China amidst the Sino-American trade war,according to Maybank Kim Eng senior economist Chua Hak Bin.
The expert told Vietnam Economic Times that mostmulti-national companies will continue restructuring their supply chains toreduce dependence on China, and ASEAN countries will benefit from thisdiversification.
In this context, Vietnam has emerged as a bigbeneficiary, he said, noting that the trade tension’s impact on the country’sgrowth rate will be eased thanks to the shift and diversification in globaltrade and investment.
Chua said recent data has illustrated thisforecast. Foreign direct investment (FDI) in Vietnam set a new record in thefirst four months of 2019 when foreign investors registered 7.45 billion USD innew and additional capital – up 29 percent year on year. They also registered7.1 billion USD to buy shares of Vietnamese firms, rising more than three-foldfrom a year earlier.
The country’s exports of apparel, wood products,computer and electronic components, and mobile phones to the US are alsogrowing sharply while similar commodities from China are now subject to highertariffs due to the trade war.
The economist expressed his belief that FDI toVietnam will continue increasing and support GDP growth this year.
Even when a US-China trade deal is signed in thenext several months, multi-national companies planning to make new investmentsare still likely to apply a “China Plus One” strategy to reduce theirvulnerability to any trade tensions in the future, and Vietnam is emerging as a“Plus One” destination, Chua added.-VNA
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Workers produce motorized vehicles' spare parts at a factory of the Japanese-invested Keihin Vietnam Co. Ltd in Thang Long II Industrial Park in Yen My district, Hung Yen province (Photo: VNA) 
