According to forbes.com, Vietnam has several advantages over other regional rivals such as India. Vietnam has the ability and indeed has quickly developed a new business-friendly policy framework.
According to forbes.com (US), for decades, Vietnam has opened its doors to large corporations. In the coming time, Vietnam will have even greater business opportunities under the Trump administration 2.0.
During the election campaign, Donald Trump pledged to move all industries back to the United States. However, this is unlikely, and if so, certainly not at the scale and pace that Trump wants.
Instead, a possible scenario is that Vietnam will be the main beneficiary of this policy.
Jason Miller, Professor of Supply Chain Management at Michigan State University, said: "If goods were previously produced in China, now they will be produced in Vietnam. That production is not going to come back to the U.S."
Under the Trump administration 1.0, large corporations such as Apple, Foxconn and Intel have turned to Vietnam to diversify their production portfolios. The article said that Vietnam still has an advantage when Mr. Trump is re-elected President.
According to forbes.com, Vietnam has several advantages over other regional rivals such as India. Vietnam has the ability and indeed has quickly developed a new business-friendly policy framework.
Vietnam also has a favorable geographical position when owning 3 of the 50 busiest seaports in the world and bordering China, making trade and logistics activities between the two countries easier.
Vietnam is a rare country in the region that has a Free Trade Agreement with the European Union (EU). Vietnam is also urgently upgrading critical infrastructure to support large projects and is welcomed by foreign investors.
Recently, Trump has repeatedly stated that he wants to boost U.S. production and make foreign-made goods more expensive to import into the U.S., including warning of a 60 percent tariff on goods made in China and 20 percent on goods made in other countries.
Tran Ngoc Anh, a professor of management at Indiana University (USA), said that one of the top ways for Vietnam to turn these strict new trade regulations into an "advantage" is to turn to multinational corporations because these corporations will bring their own supplier ecosystem and focus on high-value items.
He stated: "Vietnam should prioritize corporations that will attract other companies to Vietnam. If you bring Apple to Vietnam, there will be many other suppliers who want to be close to Apple - companies that will help Vietnam move into the high-tech sector. Instead of producing footwear and textiles, Vietnam needs to turn to biotechnology, artificial intelligence (AI) and semiconductors."./.
