The policy of imposing a 10% tax on $ 200 billion of imported Chinese goods, proposed by US President Donald Trump, takes effect at 0h01 EDT (11h01 Hanoi time) on September 24th. Accordingly, the tax rate will increase to 25% at the beginning of 2019
The policy of imposing a 10% tax on USD200 billion of imported Chinese goods, proposed by US President Donald Trump, takes effect at 0h01 EDT (11h01 Hanoi time) on September 24th. Accordingly, the tax rate will increase to 25% at the beginning of 2019.
With this tax policy, the value of Chinese goods imposed by the United States has increased to USD200 billion, about half of China's exports to the United States in 2017.
Compared to the USD200 billion of Chinese goods exported to the United States, similar products that Vietnam exported to the United States only valued at USD13 billion, of which the largest proportion is wood and furniture with 37%.
Therefore, the expectation of this sector to benefit from the order moved from China to Vietnam became more stable. Of the millions dollars worth of wood products exported each year at Hiep Long Furniture Co., Ltd., 20% is exported to the US market. According to the company, US orders have been increasing recently.
Similarly to wooden furniture, agro-aquaculture, electronics, bags, plastics, rubber are the industries to benefit from China – US tradewar. Vietnamese businesses can take advantage of the trade war to replace gradually exported strength items from China to US.
On another occasion, conflicts also led the Chinese businesses choosing Vietnam for investment and cooperation. This on the one hand opens up many opportunities for local businesses but can also lead to great challenges.
In conclusion, that is the opportunity for Vietnamese enterprises to enter the US market. However, unless Vietnamese enterprises grasp the opportunity, it will be only temporary.