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US-China trade war to hamper Vietnam’s GDP
Vietnam’s GDP value could suffer a slump of VND6 trillion (US$26.01 million) in the next five years due to impacts of the US-China trade war, Deputy Prime Minister Pham Binh Minh has cited preliminary calculations as saying.
In response to queries of NA delegate Nguyen Anh Tri on the country’s actions in dealing with the negative impacts caused by the sharply escalating trade tensions, the Deputy PM said that Vietnam has calculated several scenarios in response to the developments of the trade war.

The trade war is a great concern for Vietnam and the world at large. The Deputy PM quoted comments by the International Monetary Fund (IMF) chief as saying that the trade war continues to cloud the global economy while the global economic growth is forecast to drop to 3.2 per cent from 3.5 per cent if the trade tensions drag on.

He asserted that the US-China trade conflict will have impacts on Vietnam in the long term.

The government has mapped out scenarios to cope with the trade war since it broke out last year. Indeed, the government looks to take over solutions aimed to maintain macroeconomic stability, curb inflation rates, retain a stable exchange rate policy, and improve corporate competitiveness and the local investment environment.

In the short-range forecast, the trade war is believed to help boost exports, though it could ultimately hamper the supply of some exports in the long term, he noted.

There is a trend of shifting foreign investment into Vietnam; therefore the country should be more selective with FDI while giving priority to FDI projects that use modern and eco-friendly technologies.

The country needs to be vigilant against imports which are then re-exported to other countries in order to avoid tit-for-tat tariffs in the trade war, the Deputy PM added.

Source: Dtinews