Eyes are turning to Vietnam as a champion in U.S/China trade war. Vietnam is a country of 97 million people and it has one of the fastest growing economies in the world. Additionally, greater than two-thirds of the Vietnamese population is age 35 or under which equates to favorable demographics feeding its climb.
Tariffs imposed on Chinese companies by the U.S. are eating away at company profit margins due to the increased production costs. This in turn is causing a domino effect whereby foreign companies seek to relocate production out of China to Vietnam thereby averting heavy tariffs.
Vietnamese exports to the U.S. between January and May of 2019 escalated 36% when compared with the same period in 2018. Vietnam became the 8th largest source of American imports with $25 billion in shipped goods through May of 2019 (up 4 notches from 12th place the prior year).
Vietnam has made enormous steps in the past 10 years when they caught the eye of Samsung, Intel and Canon, among others. Samsung exports alone accounted for approximately 25% of Vietnam’s exports in 2018. Also notable is that Foreign Direct Investments (FDI) are on point to increase in 2019 for the 8th year in a row, as well as free trade agreements which are further expected to bolster the economy.
Both SKT’s Vietnam and California offices specialize in entity relocation, entity formation, entity structure, entity licensing, as well as entity licensing, start-up and expansion into Vietnam.