Back Stories » Vietnam » US-China Trade War Will Hit Vietnam the Hardest in Southeast Asia: Report

US-China Trade War Will Hit Vietnam the Hardest in Southeast Asia: Report

The US and China's tit-for-tat moves could wreak havoc on many economies in Asia.

According to an analytical report by Financial Times Confidential research, because of its export dependency, Vietnam will be impacted the hardest in Southeast Asia by the US-China trade war, Nikkei Asian Review reports.

Vietnam is currently the most export-dependent countries among the ASEAN big five, which includes Indonesia, the Philippines, Thailand and Malaysia.

The US has always been Vietnam's largest export market until last year when Vietnam's General Department of Customs announced that China has dethroned the US to be Vietnam's largest export market. Vietnam's annual exports to the US were valued at US$43.7 billion, which ranked first among the five ASEAN countries. The strengthening of US dollar also contributes to the economic threat the US-China trade war poses to the country.

The rest of ASEAN and Asia will not be immune to the impact of the tension between the two biggest world economies. The Philippines and Indonesia's current situation will also put the two countries under serious risk of having a currency crisis.

In June 2018, the Trump administration announced that it would slap a 25% tariffs on US$50 billion worth of goods from China, accusing the country of unfair trade practices. China responded saying it would fight back with retaliatory tariffs, declaring that the US has launched a trade war. The US responded by threatening to impose an additional 10% tariff on US$200 billion of Chinese imports.

Should the decision goes through, many Asian economies will suffer collateral damages.  

"Asia is an export-dependent region, and for many economies [exports] are an engine for growth," said Stephen Schwartz, head of Asia-Pacific sovereign debt at ratings agency Fitch, to CNN Money. "No doubt about it, if this thing escalates, it would have a material impact on the region," he added.

[Photo via Creative Commons] 

Related Articles:

China Becomes Vietnam’s Largest Export Market

Vietnam Was World's Top Coffee Exporter in March

Vietnam Halts Rice Exports to US After Shipments Rejected Over Pesticide Levels

Related Articles

in Vietnam

$14 Million Approved For Restoration Of Hanoi’s 112-Year-Old Long Biên Bridge

The fate of one of Vietnam’s most beloved and storied structures took another positive turn last week when the government approved a $14 million restoration package for Long Biên Bridge.

in Vietnam

'Amazing Race Vietnam' Apologizes for Challenge Harming Coral Reef

An underwater challenge during this year’s installment of The Amazing Race Vietnam is not sitting well with environmentalists.

in Vietnam

10 Killed, Over 30 Missing in Central and Northern Vietnam as Storm Son-Tinh Brings Flash Floods

Heavy rains from storm Son-Tinh, which eventually weakened to a tropical depression, have caused flash floods and fatalities in central Vietnam.

in Vietnam

104-Year-Old Great-Great Grandmother Fights Off Robber

Taking advantage of the elderly will inevitably result in some bad karma, a lesson a Dong Nai man quickly learned after attempting to rob Vo Thi Bai, a 104-year-old woman.

in Vietnam

116-Year-Old Recognized As Vietnam's Oldest Man

The Vietnam Record Organization (VRO) has recognized 116-tear-old Y'N Dong of Đắk Nông Province as the country’s oldest man, reports Vietnam Net.

in Vietnam

12 Dead, 41 Injured After Illegal Bus Falls Into Gorge Near Sapa

12 people have been reported killed and 41 injured in a bus accident in the hills of Northern Vietnam’s Lao Cai province, reports VN Express.

Partner Content