20 November 2019

 

Predictions

  • Major business deals with US firms will reduce likelihood of Washington imposing import restrictions on Hanoi
  • Close economic and defence ties will create opportunities for US companies seeking…
  • Declining export growth will drive government strategy of diversifying trade…

 

Analysis

The Government signed USD 2.7 billion in business deals with two US firms on 8 November, including a USD 1.7 billion contract for energy company AES Corp to build a gas-fired power plant in the central province of Binh Thuan, and a USD 1 billion agreement for aerospace manufacturer Pratt & Whitney to service Vietnam Airlines’ aircraft. Separately, US Secretary of Defense Mark Esper raised concerns over China’s “excessive” territorial claims in the South China Sea on 19 November, during a visit to the region that will include Vietnam. Vietnamese Deputy Foreign Minister Le Hoai Trung had previously said on 6 November that Vietnam is considering litigation measures against China in relation to these territorial disputes.

Despite largely positive diplomatic ties, the US has hardened its approach to trade with Vietnam in recent months, aiming to reduce…

Source: US Census Bureau (Note: Trade deficit = USD value of total exports – total imports)

 

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