Better control of imports-exports needed to shelter VN from US-China trade war: seminar
Better control of imports-exports needed to shelter VN from US-China trade war: seminar
Authorities should closely monitor the import and export of goods for origin to prevent customs declaration fraud, a seminar heard in HCM City on Friday.
With the US-China trade war escalating, Chinese firms could ship their unfinished products to Viet Nam and then export them to the US through a Viet Nam-based firm as an intermediary to avoid tariffs, Ngo Vo Minh Hung, business director of VIFON, warned.
This would affect Viet Nam, as evidenced by the case of steel originating in China but exported from Viet Nam, he said.
The US Department of Commerce had decided to slap tariffs on steel produced in Viet Nam using Chinese-origin materials, he said.
With the trade war causing difficulties for Chinese firms in exporting to the US, they would increase exports to other countries, including Viet Nam, putting big pressure on local producers, he said.
He called on related agencies to better monitor imports and exports to prevent the import of poor quality products and customs fraud.
Bui Quang Tin, CEO of BizLight Business School, said Viet Nam was the only market among the US’s five trade partners with which it had a high trade deficit but had not imposed tariffs yet. But that could still happen, he warned.
If the US imposed punitive tariffs, the impact on the Vietnamese economy would be huge since the country had an “open” economy, he said.
Su Ngoc Khuong, investment director of Savills Vietnam, said the trade dispute between the US and China, two of Viet Nam’s top trading partners, could have both positive and negative impacts on the country.
When Chinese products are hit with US tariffs, Viet Nam can serve as an alternative supplier of several goods to the US, he said.
But other countries such as Thailand with similar products as Viet Nam also see it as an export opportunity, leading to an intense competition to sell to the US, he said.
Viet Nam’s seafood industry can achieve higher growth if it grabs the opportunities that might open up when the US switches from China to other sellers, he said.
The seminar also provided some useful tips for Vietnamese companies to help them avoid risks in international trading and suggested measures to boost exports to the US and China like carefully studying the markets, working with retailers and distributors there and others.
