Thursday, November 10, 2016

Trump presidency may affect Vietnamese exports

Many experts have expressed concerns that US president-elect Donald Trump's nationalism and anti-globalisation policies may badly affect Vietnam's export industry and economic growth.
On November 9, Trump was elected the 45th president of the United States after a tight race with Hilary Clinton. Trump has expressed oppositions to many Obama's policies. There's real likelihood that Trump would scrap the TPP trade deal.
Economic experts have expressed concern that Trump may scrap TPP trade deal
At the conference about financial market in 2016 held on Thursday by the National Financial Supervisory Commission, Luong Van Khoi, head of the Centre for Socio-Economic Information and Forecast's World Economic Department said the world had been shocked by Brexit and Donald Trump's presidency.
"Along with the volatility of the oil prices, Brexit and the US election further underlined that the world economy faces risks. Free trade and globalisation will be affected by nationalism and anti-globalisation movements. Which, in turn, will affect our exports and economic growth," Khoi said.
However, Khoi said Trump couldn't change the Trans Pacific Partnership Agreement.
"This may be a political move. Trump can't change what has been approved. I hope he won't hinder the TPP when he takes the office," he said.
Maritime Bank's Economic Research Centre director Trinh Quang Anh said Vietnam should review their plans as many of them are based on TPP.
Reports from the National Financial Supervisory Commission also stated that the economy in 2017 would have to face many challenges from unstable world economy and politics as world trades and flows of foreign investments will all be affected.
Before the result of the election was announced, Le Hong Giang from Tactical Global Management, Australia, stated that Trump may implement trade protectionism policies and increase import taxes. This will have adverse effect on Vietnam's main exports including textile, footwear, aqua products and wood furniture. Those commodities have over USD1bn export turnover in the first nine months.
According to the National Financial Supervisory Commission, both developed and emerging economies in the world have lower growth rates than expected.
Vietnam's manufacturing and processing and service industries maintain healthy growth rates. The monetary policies were carried out effectively and flexibly to aid firms and control inflation. The commission is optimistic about next year thanks to improved business environment for private sector. It is estimated that economic growth in 2017 may reach 6.7%. - dtinews
by Phuong Dung


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