{"id":1078,"date":"2020-04-03T16:50:50","date_gmt":"2020-04-03T07:50:50","guid":{"rendered":"http:\/\/suzuki-global.com\/?p=1078"},"modified":"2021-06-18T20:38:01","modified_gmt":"2021-06-18T11:38:01","slug":"transfer-of-business-to-vietnam-advantages-of-moving-from-china-to-vietnam","status":"publish","type":"post","link":"https:\/\/suzuki-global.com\/en\/transfer-of-business-to-vietnam-advantages-of-moving-from-china-to-vietnam\/","title":{"rendered":"Merits of transferring business to Vietnam and moving from China to Vietnam [US-China trade war]"},"content":{"rendered":"

Merits of transferring business to Vietnam and moving from China to Vietnam [US-China trade war]<\/span><\/h2>\n

The US-China trade war between the United States and China is rapidly moving business sites to Vietnam.<\/span><\/p>\n

In July 2018, US President Donald Trump insisted on China's unfair trade practices and began imposing shocking tariffs on Chinese imports.<\/span><\/p>\n

Many trade experts said the US-China trade war was not showing immediate signs of improvement, affecting the world's economies.<\/span><\/p>\n

But for Vietnam, the US-China War has actually had a positive impact on the country's economy.<\/span><\/p>\n

Vietnam is currently considered to be the most beneficiary of the US-China trade war.<\/span><\/p>\n

Vietnam's GDP surged 6.79% in the first quarter of 2019.<\/span><\/p>\n

Because China cannot export its products to the United States, many foreign investors have come to Vietnam to take measures to export their products to the United States.<\/span><\/p>\n

In this article, we will explain in detail why many Chinese companies have relocated their factories to Vietnam and how they can benefit from relocating to Vietnam.<\/span><\/p>\n

Transferring business to Vietnam, benefits for Chinese companies<\/span><\/h2>\n

\"Thermal<\/a><\/p>\n

Due to the threat of tariffs from the United States and the continued rise in labor costs, Chinese companies continue to move their business bases from China to other countries.<\/span><\/p>\n

In the apparel industry, this business transfer has been remarkable, and it is expected that the transfer of Chinese companies to Vietnam will continue to increase.<\/span><\/p>\n

Good relationship between Vietnam and USA<\/span><\/h2>\n

Vietnam's exports to the US increased to an additional $69 billion in 2019, according to Bloomberg.<\/span><\/p>\n

This is a significant breakthrough compared to $62 billion in 2018.<\/span><\/p>\n

Vietnam and the United States maintain a positive economic relationship.<\/span><\/p>\n

Vietnam's trade surplus with the United States exceeded US$39.5 billion in 2018.<\/span><\/p>\n

As the trade war accelerates, more and more Chinese companies (especially light industry and manufacturing) see it as the best time to exit a high-cost China.<\/span><\/p>\n

Passing market share to Vietnam<\/span><\/h2>\n

According to a survey conducted by the American Chamber of Commerce, China has several industries that are handing market share to Vietnam.<\/span><\/p>\n

Car tires, furniture, refrigerators, textiles, etc.<\/span><\/p>\n

Most recently, American companies Cooper Tire and Rubber Co Ltd and Sailun Vietnam Co Ltd have established a joint venture to build a tire plant around Ho Chi Minh City.<\/span><\/p>\n

Another American company, Key Tronic Corporations, is starting to use manufacturing facilities around Da Nang.<\/span><\/p>\n

Infrastructure development in Vietnam<\/span><\/h2>\n

The Vietnamese government has made national infrastructure development a top priority for economic growth.<\/span><\/p>\n

Currently, real estate, harbors, bridges and highways are under construction, including the construction of power plants.<\/span><\/p>\n

Vietnamese government stability and low wages<\/span><\/h2>\n

Compared with many neighboring countries in the Asian region, Vietnam's merit is recognized as a relatively stable government and cheap labor force.<\/span><\/p>\n

This is especially important for labor-intensive manufacturing, which is why many Chinese companies have relocated production to Vietnam.<\/span><\/p>\n

In 2010, Vietnam became the main manufacturer of Nike, surpassing China for the first time.<\/span><\/p>","protected":false},"excerpt":{"rendered":"

Transferring business to Vietnam, benefits of relocating from China to Vietnam [US-China trade war] US-China trade [\u2026]<\/p>","protected":false},"author":1,"featured_media":382,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[6,78],"tags":[121,124],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/suzuki-global.com\/en\/wp-json\/wp\/v2\/posts\/1078"}],"collection":[{"href":"https:\/\/suzuki-global.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/suzuki-global.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/suzuki-global.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/suzuki-global.com\/en\/wp-json\/wp\/v2\/comments?post=1078"}],"version-history":[{"count":3,"href":"https:\/\/suzuki-global.com\/en\/wp-json\/wp\/v2\/posts\/1078\/revisions"}],"predecessor-version":[{"id":2885,"href":"https:\/\/suzuki-global.com\/en\/wp-json\/wp\/v2\/posts\/1078\/revisions\/2885"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/suzuki-global.com\/en\/wp-json\/wp\/v2\/media\/382"}],"wp:attachment":[{"href":"https:\/\/suzuki-global.com\/en\/wp-json\/wp\/v2\/media?parent=1078"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/suzuki-global.com\/en\/wp-json\/wp\/v2\/categories?post=1078"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/suzuki-global.com\/en\/wp-json\/wp\/v2\/tags?post=1078"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}