With the new Biden administration and a probable and much sought shift in the American approach towards the trade dynamics, negotiations and trade talks with China resume in new spirits in Alaska. We see an active decoupling from the US side and at the same time the general Chinese sentiment is still that of being wary of US intentions. There is a rather exhausted pushback towards the discourse of the human rights abuses being carried out in the Western parts of China.
With this ensuing in the backdrop, Vietnam is all set to emerge as the master of the balancing act of taking neutral sides as well as its very own legend of the Asian Tiger. It has benefited across multiplicity of venues and becoming a booming solid manufacturing base would be just one.
Vietnam in 2021 : growth and opportunities
Despite of sharing a very actively crossed border with China it was able to minimize the impact of the COVID-19 to an extent that subsequently allowed opening of its industries earlier than China as well as India. It got away with the restrictions that crippled its rivals and it got ahead by the virtue of the new European Union bonding of the ASEAN.
To highlight some of the key points about business, investment and manufacturing in Vietnam, you can watch this video :
You will learn about :
- the recent Alaska talk and the current situation between China and the US;
- what are the main sectors in Vietnam that will benefit from those tensions;
- how is the trade agreements between Europe and Vietnam (EVFTA)
- how to get started in the sourcing or manufacturing goods in Vietnam to export;
Trade agreements between EU and Vietnam
Vietnam is one of the largest manufacturers of shoes globally and has the most significant export capacity in the world. Consumer goods, which is admittedly an extensive category, is Vietnam’s largest industry.
Its long list of production profile also include: Plastic and rubber goods, furniture, packaging, electrical equipment, crude petroleum and leather.
Companies from Europe, especially those of France, are enjoying more and more integration and lower tariffs in trade and dealings with the Vietnamese. Its infrastructure is resilient and strong too, which bears flexibility in the face of its expanding economy. Its workforce is highly skilled and educated. Factory production and global supply chains have been melting down the border from China straight into the capacitated limbs and low-cost factories of the Vietnamese.
Vietnam : a top-performing economy for 2021 ?
As China struggles with the trade negotiations with the US and tries hard to break deals for its tech companies, Vietnam marches ahead and ahead. Vietnam is likely the top-performing Asian economy in 2020: a feat that was achieved without a single quarter of economic contraction.
Government estimates showed the Vietnamese economy growing 2.9% last year from a year ago, better than China’s forecast-beating 2.3% growth during the same period.
Manufacturing trends and anticipations
Manufacturing was widely credited for Vietnam’s outperformance, with production growing on the back of steady export demand. It is a formidable force in attracting foreign direct investment owing to its ever growing, and now the world’s third largest, middle class market. Vietnam’s middle-class population, currently at 10%, is believed to be the fastest growing in Southeast Asia. As this population gets more and more buying power, it becomes ideal for foreign investors. If you want to learn more about opportunities in investing in Vietnam, you can check out this guide on movetoasia.com.
The housing development patterns indicate clearly that people are getting richer and buying their own houses along the cities like Ho Chi Minh. All these determinants and factors point to the bright future that is ready to greet Vietnam at the horizon in the background of the superpower competitions.