Pham Tat Thang, head of the Institute for Trade Research and senior expert from the Ministry of Industry and Trade (Photo: VNA)Hanoi (VNA) – The escalating trade tension betweenthe US and China will cause considerable impact on Vietnam’s export, accordingto Pham Tat Thang, head of the Institute for Trade Research and senior expert fromthe Ministry of Industry and Trade.
Thang noted that China has devaluated its currency price tothe lowest level recently, which has affected the world market, includingVietnam.
As Vietnam’s exports to the Chinese market are large, thedevaluation of Chinese RMB will make Vietnam’s exporting activities to thecountry more difficult and almost unprofitable, the official said.
He advised local firms to seek other markets, especiallythose signing free trade agreements with Vietnam, including Eurasian Economic Union members.
Thang stressedthe 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 theexchange rate between the VND and other currencies will not affect thecountry’s economy, he said.
The expert assertedthat the development of the trade tension is unpredictable and may expand toother sector.
This will lead tochanges in the demand-supply relations, which will harm all countries,especially those depending on export and investment, he said.
He alsounderlined the urgent need for the Government as well as ministries, agenciesand enterprises to prevent Chinese goods to be marked “made in Vietnam” andexported to the US, as it will seriously and negatively affect Vietnam’sexporting activities to the US, not only for one but many sectors.-VNA
VNA
