Summary of Trump’s Trade War Created This Boomtown in Vietnam. Now Tariffs Could Topple It. | WSJ Center Point
The video discusses the rapid economic growth of Haiphong, Vietnam, which has transformed into a significant manufacturing hub over the past decade, largely due to the impact of U.S. tariffs during Donald Trump's presidency. The city has developed a deep-water port and extensive industrial zones, attracting major companies like LG Electronics and Pegatron, which relocated some production from China to Vietnam in response to the trade war.
Key Points
- Haiphong's strategic location near China and its newly developed infrastructure have made it an attractive alternative for manufacturing.
- The city's economy grew by over 17% in 2019, significantly outpacing national growth rates, and it has become a major player in U.S. trade, now holding the third largest trade surplus with the U.S.
- Concerns have arisen that Chinese companies are using Vietnam as a backdoor to circumvent tariffs, leading to speculation about potential new tariffs from the U.S. on Vietnamese goods.
- Analysts warn that uncertainty about future tariffs could hinder business investment and growth in the short term, as companies may hesitate to expand without a clear understanding of the trade landscape.
- Despite these challenges, Vietnam's long-term prospects remain strong, bolstered by free trade agreements and ongoing infrastructure projects aimed at enhancing connectivity with China and other markets.
The video concludes that while the re-entry of Trump into the political scene may pose new challenges, the investments made in Haiphong could help sustain Vietnam's economic momentum.
Presenters/Contributors
- Reporter (unnamed)
Notable Quotes
— 00:48 — « We're losing with China $500 billion a year, we have to do something. »
— 01:16 — « I, at that time, had presentations where I presented Mr. Trump as one of my best salesman ever, because he and his tariff plan, ensured that for the first time ever, foreign companies starting to consider, is it worth the effort to start develop something in a country like Vietnam. »
— 02:36 — « It has edged out Germany with the U.S., and they are the rogue countries through which China is sending their goods to U.S. »
— 03:44 — « But in the long term, the past six years have positioned the country to become the next factory of the world. »
— 04:23 — « The most optimal supply chain is not the cheapest, but it's the most flexible, the most agile, the one that allows you to make TV screens today in China because there are no tariffs. »
Category
News and Commentary