Why Trump thinks Vietnam is worse than China on trade

[Viet]

Vietnamese workers are considered hard-working, flexible and obedient. Photo: Reuters



Ko Tin-yau
Jul 2, 2019 11:57am


In a recent interview, US President Donald Trump called Vietnam the “single worst abuser” of trade ties with the United States, and that the country takes advantage of the US even worse than China does.

Vietnam is widely believed to be the biggest winner in the relocation of the supply chain away from China. A large number of garment, plastic, toy and electronics makers have moved their factories to Vietnam due to rising labor costs and tighter environmental protection rules in China.

But why Vietnam among all Asian countries?

India, Pakistan and Indonesia have a bigger population than Vietnam. And the labor costs in Cambodia, Myanmar and Laos are cheaper, while workers in Philippines and Malaysia are better educated.

One reason is that Vietnam’s government has been actively pushing Chinese-style reform and opening up of its economy. Also, Vietnamese workers are considered hard-working, flexible and obedient, just like their Chinese counterparts in the 1980s.

While Vietnam is exporting a lot to the US, as a developing country, it is not yet wealthy enough to consume high-end US products such as iPhone and Tesla cars. The result is a quickly widening trade imbalance between the two nations.

Vietnam’s exports to the US totaled US$49.2 billion last year, while its imports from US only reached US$9.7 billion. That’s a trade surplus of US$39.5 billion.

This trade gap is the already the fifth largest for the US among its trade partners. The US runs the biggest trade deficit with China, followed by Germany, Mexico and Japan.

The US trade deficit with Vietnam surged 44 percent in the first four months of 2019 from a year ago. It won’t be a surprise if Vietnam replaces Germany for the second spot in a few years.

This explains why Trump regards Vietnam as a worse trade counterparty than China.

http://www.ejinsight.com/20190702-why-trump-thinks-vietnam-is-worse-than-china-on-trade/

 

[Viet]

Vietnamese workers are as obedient as chinese workers in the 1980s?

 

[tower9]

Vietnamese workers are as obedient as chinese workers in the 1980s?

I would say that Vietnam right now is Mainland China circa 2000. It is starting to amass a large industrial capacity by starting at the lower end of the supply chain, but will likely be moving up in the next 10-15 years.

Trump knows the history of East Asian countries industrializing too well and it is one of the biggest irritants for him. That is why he's not letting Vietnam slide even though it is still very small in comparison to the other Asian countries because he knows the trajectory. Countries that make money off the US and advance, this is simply not acceptable to him.

 

[Han Patriot]

I would say that Vietnam right now is Mainland China circa 2000. It is starting to amass a large industrial capacity by starting at the lower end of the supply chain, but will likely be moving up in the next 10-15 years.

Trump knows the history of East Asian countries industrializing too well and it is one of the biggest irritants for him. That is why he's not letting Vietnam slide even though it is still very small in comparison to the other Asian countries because he knows the trajectory. Countries that make money off the US and advance, this is simply not acceptable to him.

The problem with Vietnam is they don't develop tech companies. Taiwan had their own companies, japan, Korea, China, even HK. What we are seeing is foreign companies exploiting cheap labor. In the 80s US companies did not invest much in China, it was the Hongkies and Taiwanese building in their respective home provinces supplying part and components to MNCS. After this supply chain had been created, local Chinese companies entered after learning the trade. Then came the big boys who invested in facilities to exploit the China market. These initial facilities were slowly converted to export after a cluster was created and efficiency levels rose this process maybe took 20 years. The last 20s were tech companies and higher end services industries to serve China and the whole. Now we are at a new stage. Industrial 4.0, high technology and domestic consumption. Another 10 years, this should be complete. And another 10 years to reduce population to a suitable level.

 

[Paul2]

Businessmen relocating their companies relocating from China should make no mistake, Trump and whomever will come after him will not be off from your back wherever you go in Asia. Unless you make the determination on which side of the conflict you stand, you will have to keep running with your business every time America wants to put a lid on an upcoming contender.

You will have no market to sell to, nor a location to setup manufacturing in. Only in a country determined to offer political protection to and stand for its industry, will you be able to enjoy both. Will Vietnam be ready to play rough with USA, and endure a temporary setback of being unable to access US market, for the sake of long term survival of its industry on the global stage?

 

[Viva_Viet]

The problem with Vietnam is they don't develop tech companies. Taiwan had their own companies, japan, Korea, China, even HK. What we are seeing is foreign companies exploiting cheap labor. In the 80s US companies did not invest much in China, it was the Hongkies and Taiwanese building in their respective home provinces supplying part and components to MNCS. After this supply chain had been created, local Chinese companies entered after learning the trade. Then came the big boys who invested in facilities to exploit the China market. These initial facilities were slowly converted to export after a cluster was created and efficiency levels rose this process maybe took 20 years. The last 20s were tech companies and higher end services industries to serve China and the whole. Now we are at a new stage. Industrial 4.0, high technology and domestic consumption. Another 10 years, this should be complete. And another 10 years to reduce population to a suitable level.

Okay, but we control CN-TW-SK-JP shipping line passing through SCS ( east VN sea). When we cover the sea wt sea mines, then all of u will go back to third world nations and walk on foot and ride on bicycle cos u guys cant import oil from Middle east

And Toyota, Honda will become bicycle company instead cos CN TW SK JP dont have oil to run the cars

 

[tower9]

The problem with Vietnam is they don't develop tech companies. Taiwan had their own companies, japan, Korea, China, even HK. What we are seeing is foreign companies exploiting cheap labor. In the 80s US companies did not invest much in China, it was the Hongkies and Taiwanese building in their respective home provinces supplying part and components to MNCS. After this supply chain had been created, local Chinese companies entered after learning the trade. Then came the big boys who invested in facilities to exploit the China market. These initial facilities were slowly converted to export after a cluster was created and efficiency levels rose this process maybe took 20 years. The last 20s were tech companies and higher end services industries to serve China and the whole. Now we are at a new stage. Industrial 4.0, high technology and domestic consumption. Another 10 years, this should be complete. And another 10 years to reduce population to a suitable level.

Vietnam's current level of development is China circa 2000, S. Korea, Taiwan circa 1970, etc.

In other words, they are still at a relatively early stage of industrialization. They may develop tech companies as they move up.

 

[KAL-EL]

But Vietnam produces good fruit and fish sauce.

 

[Viva_Viet]

Vietnam's current level of development is China circa 2000, S. Korea, Taiwan circa 1970, etc.

In other words, they are still at a relatively early stage of industrialization. They may develop tech companies as they move up.

When the right time come, we will force SK,JP, TW to transfer high tech like what CN did before trade war...or else, their merchant ships passing through SCS( east VN sea) will be sunk

 

[Han Patriot]

Vietnam's current level of development is China circa 2000, S. Korea, Taiwan circa 1970, etc.

In other words, they are still at a relatively early stage of industrialization. They may develop tech companies as they move up.

Market and living standards wise I agree but technologically wise, don't think they are even at a 1980s Chinese level. In the 80s, we have shipbuilding, engine, aircraft, primitive electronics, etc from the MIC researches. Of course these were primitive compared to the West, but even until today Vietnam doesn't have these basic foundation. What we have today was not built in 20 years, it was the foundation since 1949, accumulated experiences, technology and skills.

 

[Kai Liu]

Okay, but we control CN-TW-SK-JP shipping line passing through SCS ( east VN sea). When we cover the sea wt sea mines, then all of u will go back to third world nations and walk on foot and ride on bicycle cos u guys cant import oil from Middle east

And Toyota, Honda will become bicycle company instead cos CN TW SK JP dont have oil to run the cars

Won't you ever get bored of fuxking yourself using this map shit???
Our fighter jets, bombers, and even passenger planes are everywhere in the SCS islands... If we want, we will send all your jungle creatures armed with a few rifles to feed the sharks, and you can't do shit...lol...

http://www.chinadaily.com.cn/china/2016-07/14/content_26081141.htm

 

[Viet]

I would say that Vietnam right now is Mainland China circa 2000. It is starting to amass a large industrial capacity by starting at the lower end of the supply chain, but will likely be moving up in the next 10-15 years.

Trump knows the history of East Asian countries industrializing too well and it is one of the biggest irritants for him. That is why he's not letting Vietnam slide even though it is still very small in comparison to the other Asian countries because he knows the trajectory. Countries that make money off the US and advance, this is simply not acceptable to him.

Trump wants Vietnam to buy more US products. Ok Vietnam has received the message, there are announcements we will import more. In respect to other Asian tigers, what Vietnam needs is technology and 100 more companies like Vinfast.

 

[lcloo]

Update 2 hours ago
US imposed more than 400% tariff on Vietnamese steel.

 

[Viet]

Update 2 hours ago
US imposed more than 400% tariff on Vietnamese steel.

That is for steel that is originated from Korea and Taiwan. Usually Chinese use Vietnam to smuggle everything to other countries. What new is now the Koreans and Taiwanese also use the trick. Ok the tariff is expected.

 

[GraveDigger388]

@Viva_Viet is violence your answer to everything? Look at your comrade @Viet bringing up a decent thread and then even posted some RELATED comment and everyone is having RELATED if chill discussion.

And then you came barging in, all guns blazing talking about hUrRrRr DuRrRrR sEa MiNeS like a dummy.

....and you said WE are the barbarians.