The article titled “Why Vietnam could be Asia’s biggest trade war winner” quoted a senior economist at Natixis in China’s Hong Kong as saying “Vietnam is poised to capture some of China’s global market share in labour-intensive manufacturing”.
Vietnam is taking advantage of trade tensions to boost the nation’s profile as a manufacturing and export powerhouse, selling everything from shoes to smartphones. Trade amounts to about twice its gross domestic product - more than any country in Asia apart from Singapore, the economist said.
The article also looks at what makes Vietnam attractive to foreign investors.
Production workers in Vietnam are paid an average of 216 USD a month, less than half what their peers get in China. Thanks to government subsidies, electricity is also cheaper than in Indonesia and the Philippines, according to GlobalPetrolPrices.com’s June data.
Vietnam also has one of the largest labour forces in Southeast Asia, at 57.5 million. That compares with 15.4 million for Malaysia and 44.6 million for the Philippines, according to the World Bank.
Regarding trade deals, Vietnamese leaders have pursued free trade agreements with the Republic of Korea and Europe and signed the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in March this year.
Vietnam completed a trade deal with the EU in June that will eliminate almost all tariffs. In Southeast Asia, only Singapore has a similar agreement with the EU.
Vietnam’s government is also making it easier for foreign investors to do business with a proposed securities law allowing 100 percent foreign ownership of public companies, except those in restricted sectors like banking and telecommunications.
Foreign direct investment (FDI) in Vietnam is surging, with the government expecting disbursed FDI to rise to a record 18 billion USD this year.
Vietnam’s proximity to China also adds to its appeal, according to the article.
Chinese companies that need raw materials or product components from the US will find it easier to source these goods via Vietnam.
In addition, Vietnam is China’s largest trading partner in Southeast Asia.
Vietnam boasts one of the world’s fastest-growing economies, forecast to expand at about 7 percent this year. The dong has been relatively stable in 2018, compared with other currencies in Asia.
“Strong economic growth and political stability are very important to investors,” said Tony Foster, the Hanoi-based managing partner in Vietnam for law firm Freshfields Bruckhaus Deringer LLP.
Relating to this topic, Erik Lundh, senior economist of the Conference Board, a non-profit independent economy research organisation in the US, told Vietnam News Agency correspondents in the US that many multinational groups which previously depended on China have considered building manufacturing workshops in countries like Vietnam because of the labour cost advantage and fewer risks posed by the US-China trade war.
According to the expert, to succeed like China over the past two decades, Vietnam should aim to become a high-tech manufacturing destination and focus on developing high quality human resources.
VNA
(seafood.vasep.com.vn) Da Nang City has fully implemented all recommendations from the European Commission (EC) regarding the fight against illegal, unreported and unregulated (IUU) fishing, creating an important foundation for the removal of the “yellow card” in the near future.
(seafood.vasep.com.vn) In Hoa Vang district (Da Nang City), red tilapia farming is demonstrating clear economic efficiency, becoming a promising livelihood that helps many households increase their income. A notable example is the model of Mr. Huynh Ngoc Nam, who operates two red tilapia ponds covering more than 4 hectares, generating stable annual income.
(seafood.vasep.com.vn) In Gia Vien district, tilapia farming—particularly the “duong nghiep” strain—is expanding rapidly and gradually becoming an efficient production model for local farmers. Hatcheries in the area are supplying high-quality, uniform, and disease-free fingerlings, meeting the growing demand for commercial farming.
(seafood.vasep.com.vn) On the afternoon of March 19, Vice Chairman of the Ca Mau Provincial People’s Committee, Le Van Su, chaired a meeting to address bottlenecks and propose solutions to expand the super-intensive whiteleg shrimp farming model using low water exchange and high biosecurity standards (RAS-IMTA).
(seafood.vasep.com.vn) On March 10, 2026, the Ho Chi Minh City People’s Committee issued Decision No. 1377/QD-UBND approving the Aquatic Animal Disease Prevention and Control Plan for the 2026–2030 period. The decision takes effect from the date of signing and replaces previous plans for the 2021–2030 period that had been issued prior to the administrative merger in Ba Ria – Vung Tau, Binh Duong, and Ho Chi Minh City.
(vasep.com.vn) In 2025, Chile imported more than USD 156 million worth of tuna, up 8.1% compared to the previous year and the highest level in the past five years. As the supply structure in this market is rapidly shifting, Vietnamese tuna is facing both opportunities to expand market share and increasing competitive pressure from Thailand, Colombia, and China.
(seafood.vasep.com.vn) Vinh Long Province is stepping up efforts to develop brackish water shrimp farming in a sustainable direction, identifying it as a key sector in its agricultural structure. In 2026, the province aims to reach around 71,300 hectares of shrimp farming, with an output of over 314,000 tons.
(seafood.vasep.com.vn) Ha Tinh Province is strengthening control over shrimp seed quality to minimize risks for the 2026 spring–summer farming season.
(seafood.vasep.com.vn) In February 2026, Vietnam’s pangasius exports reached USD 119 million, down slightly 5% year-on-year. However, thanks to strong performance in January, cumulative exports in the first two months of the year still reached USD 331 million, up 28% compared to the same period in 2025. Export activity slowed somewhat in February due to seasonal factors, particularly the Lunar New Year holiday, which disrupted production and shipments at many seafood processing enterprises.
(seafood.vasep.com.vn) Da Nang is accelerating the development of high-tech shrimp farming toward intensive production, disease control, and improved efficiency. Many shrimp farms have invested in automated environmental monitoring systems, continuously tracking indicators such as pH, dissolved oxygen, temperature, and salinity, enabling farmers to promptly adjust pond conditions and reduce disease risks.
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