The escalating trade tension between the US and China will cause considerable impact on Vietnam’s export, according to Pham Tat Thang, head of the Institute for Trade Research and senior expert from the Ministry of Industry and Trade.
Pham Tat Thang, head of the Institute for Trade Research under the Ministry of Industry and Trade (Photo: VNA)
Thang noted that China has devaluated its currency price to the lowest level recently, which has affected the world market, including Vietnam.
As Vietnam’s exports to the Chinese market are large, the devaluation of Chinese RMB will make Vietnam’s exporting activities to the country more difficult and almost unprofitable, the official said.
He advised local firms to seek other markets, especially those signing free trade agreements with Vietnam, including Eurasian Economic Union members.
Thang stressed the need to avoid US-China trade war’s impact on Vietnam’s currency market. This requires the Government to keep a close eye on the market to ensure the exchange rate between the VND and other currencies will not affect the country’s economy, he said.
The expert asserted that the development of the trade tension is unpredictable and may expand to other sector.
This will lead to changes in the demand-supply relations, which will harm all countries, especially those depending on export and investment, he said.
He also underlined the urgent need for the Government as well as ministries, agencies and enterprises to prevent Chinese goods to be marked “made in Vietnam” and exported to the US, as it will seriously and negatively affect Vietnam’s exporting activities to the US, not only for one but many sectors.