Vietnam is benefiting from the extended US-China trade war, with 15 per cent of respondents in a new joint survey by NNA and the Vietnam Chamber of Commerce and Industry saying they are looking to step up production.
While much anecdotal evidence has suggested that manufacturers operating in Vietnam are benefiting from the transpacific trade war, this survey is among the first to provide clearer evidence of such activity.
A survey of 566 firms in Vietnam showed that 31 per cent of respondents had expanded output, while 31 per cent anticipated rising sales in the years ahead. This included 200 local firms, 81 from South Korea, 66 from Japan, 35 from Europe, 22 from China and 14 from the US, as well as from other countries and regions.
By industry, 26 per cent of respondents were textile firms, 17 per cent were in the food and beverage sectors, and 7.0 per cent were footwear makers with others from high tech and other industries.
Since the outbreak of the trade war early last year, 24 per cent of the 566 respondents said they had witnessed a rise in sales “somewhat” or “greatly,” while two-thirds said sales had remained unchanged.
As a result of the trade war, 15 per cent said they were considering stepping up production, primarily in Vietnam, along with other neighbouring countries.
Among Japanese firms operating in Vietnam, 35 per cent said they will expand their production, according to the survey.
“US companies appear to place more orders with Vietnamese firms,” said Kenichi Kitazawa, general director of Altech Asia Pacific Vietnam Co., a local arm of Japanese machinery trader Altech Co.
Exports to the US market by his company’s clients in the soft packaging industry are increasing, he told Japanese media outlet, NNA.
Kitazawa also highlighted that there have been growing orders for food processing machines from client firms who are relocating production bases from China to Vietnam.
Vietnamese exports to the US in the first five months of this year surged 29 per cent from a year ago to USD 22.7 billion, according to NNA, citing Vietnamese government data.
A separate NNA survey on 119 Japanese manufacturers operating in China in April and May this year showed 51 per cent had suffered a decline in sales or orders “somewhat” or “greatly.”
Among the respondents, 10 per cent said they will cut output in China, while 18 per cent said they will boost production in other countries, the survey found.