Business

Will Vietnam Be Able To Stand Its Ground Amidst Trump’s Displeasure?

One of the best attractions of Danang is its tranquil beaches with clear blue waters and national parks. French influence in Vietnam can be felt in the French village in Danang that is nestled in the scenic mountain range of the Bana Hills. The elegant rooms are inspired by French Gothic colonial style and feature the spectacular views of the Bana Hills.

Trade wars are easy to win for the likes of Donald Trump but it is challenging for those who are trying to manage the effects on the global market. Over the past 6 months, Vietnam was quiet as Trump’s tariffs slammed China. The 25% tariff imposed on China wreaked havoc with supply chains.

Meanwhile, Vietnamese factories took advantage of the opportunities and gladly accepted business from multi-national companies that were looking for an exit route. Vietnamese factories increased production of smart phones, textiles, shoes and furniture. During the first 5 months of 2019, Vietnam’s exports to the United States increase by 36% year-on-year with inward investments jumping by 69% within the same period to nearly $17 billion year-on-year vs. the 1st 5 months of 2018.

Unfortunately, Trump’s team took notice of how suppliers were circumventing the mercantilism of Washington. South Korea and Taiwan were routing their US-bound steel shipments through Vietnam to be able to avoid the tariffs. The White House was displeased and it added Vietnam to its currency manipulation watch list last May.

Early this month, Trump showed his displeasure by imposing penalties that are 18 times larger than those imposed on Beijing. The 456% tariff on Vietnamese steel was not a typographical error; it is true because Trump wanted to punish Hanoi.

It leads to the question on whether more chaos can be expected. First it was China and then Vietnam. Who’s next? Is it Japan, the EU or China again? The fact remains that Vietnam’s economy grew by 6.71% in the 2nd quarter of this year which is due to the alternative-to-China dynamic.

The best time of the year to visit Danang is between May and August when the waters are calm and the sun is out all day. You can book your accommodations at French Village in Danang and enjoy the myriad of fun activities that the resort offers.