admin According to the World Bank, Vietnam’s economy is now one of the fastest growing economies in the region, and it’s mostly supported by robust domestic demand and export-oriented manufacturing.
Vietnam has come out on top as the largest beneficiary of diversions resulting from the trade tensions between the U.S. and China. In a June report produced by Nomura, the Japanese investment bank estimated that Vietnam gained a 7.9% increase in its gross domestic product from a new business seeking alternatives among the ongoing tariff battle
Specifically, the products traditionally exported from China to the United States which includes phone parts, furniture, and automatic data process machines have experienced the greatest increase in exports from the Southeast Asian nation, according to Nomura.
“Vietnam is clearly benefiting from the trade war and is emerging as an alternative favorite for companies,” said a report produced by Dezan Shira & Associates in April.
Many countries are worried about suffering ill effects because of the ongoing U.S.-China trade battle. The EU-Vietnam deal shows, that Hanoi is poised to come out of the era as one of the great beneficiaries.
And even though U.S. President Donald Trump suggested recently that Vietnam could be his next major tariffs target, the new deal is likely to provide economic cushion for the Southeast Asian nation. The European Union described the EU-Vietnam Free Trade Agreement as “the most ambitious free trade deal ever concluded with a developing country.”
“From Vietnam’s perspective, enhanced access to the EU market could not come quickly enough,” said Brian Harding, deputy director and fellow at the Southeast Asia Program of think tank Center for Strategic and International Studies.
Vietnam is currently the EU’s 16th largest trade partner the trading bloc’s second-largest trading partner among Southeast Asian countries, according to the European Commission. In 2018, the country exported $42.5 billion worth of goods and services to the EU. The value of imports from the region reached $13.8 billion, official data shows.
The Vietnamese government said on Sunday that the EVFTA would boost EU exports to Vietnam by 15.28% and those from Vietnam to the EU by 20.0% by 2020.
Magazine 
