Foreign media said that as the United States imposed tariffs, Vietnam's imports from China surged

Reuters said Vietnam's imports from China surged as the US imposed tariffs.

 

This report seems to want to prove that China's exports have decreased due to the impact of the US tariffs; But exports to the United States via Vietnam

 

The related pictures are intended to prove the trade relationship between China, Vietnam and the United States

 

 

 

 

 

 

 

As the United States has reduced trade with China by raising tariffs, it has sharply increased imports from Vietnam, which relies on Chinese inputs for most of its exports, the data show. This led to a surge in trade between China and the US, widening the trade imbalance. Last year, Vietnam's trade surplus with the United States was nearly $105 billion, two and a half times what it was in 2018. Vietnam now has the fourth-largest trade surplus with the United States, behind only China, Mexico and the European Union.

 

Reuters reviewed the data and found that Vietnam's export boom has benefited from imports from China, with a 96 percent correlation between the two trade flows. Darren Tay, chief economist at research firm BMI, pointed out that the US may see Chinese companies using Vietnam to circumvent tariffs, which could lead to the imposition of tariffs on Vietnam after the US election.

 

Even as Vietnam seeks market economy status, trade imbalances have increased. Last year, the United States imported more than $114 billion from Vietnam, more than double the amount in 2018. Since 2018, U.S. imports from China have decreased by $110 billion, while imports from Vietnam account for more than half of the increase. Vietnam absorbs more than 60 percent of China's losses in key industries such as textiles and electrical equipment, but most of these exports rely on Chinese components.

 

In 2022, 80% of Vietnam's electronics exports were made up of imported parts. A third of Vietnam's imports come from China, mainly electronic products and components. The Organization for Economic Cooperation and Development reported that about 90 percent of imported intermediate goods in Vietnam's electronics and textile sectors in 2020 were subsequently exported.

 

In the first quarter of this year, the United States imported $29 billion from Vietnam, while Vietnam's imports from China totaled $30.5 billion. The White House has kept quiet about Vietnam's huge trade surplus, but analysts believe that could change after the November elections. Nguyen Ba Hung, chief economist at the Asian Development Bank, says there may be a change in policy toward Vietnam after the election, but it will increase the cost of imports to the United States.

 

The surge in trade between China and the United States reflects companies shifting activities from China to Vietnam, where new factories in the north remain heavily dependent on Chinese supply chains.

 

Free trade is often considered the best option because it promotes the efficient allocation of resources and increases the efficiency of the global economy. Individual countries attempting to change the optimal mix of global supply chains can face significant challenges, as the complexity and interdependence of global supply chains make it difficult for any single country to achieve large-scale adjustments on its own. In order to achieve the best results of trade, countries should resolve trade disputes and optimize supply chain management through consultation and cooperation within the framework of free trade.