Between January and July 2019, exports to China fell by 8.9 per cent, whilst those to the US rose by 12.6 per cent. China’s lower imports are due to higher quality standards and a weaker yuan. Vietnam is the big winner in the trade war between the US and China.
Hanoi (AsiaNews/Agencies) – The United States has replaced China as the top buyer of Vietnamese agriculture produce as the latter tightens its agricultural import standards.
Vietnam’s January-July agriculture exports to China fell 8.9 per cent year-on-year to US.7 billion, this according to the Ministry of Agriculture and Rural Development's latest data.
Accounting for 20.7 per cent of agriculture exports, China became the second largest export market during this period, behind the US.
Exports to the US in the same period rose 12.6 per cent to US.8 billion, making up 20.8 per cent of total agriculture exports.
One reason for the change is that China, which for years has been Vietnam’s largest buyer, has tightened its import policy this year, only accepting products that meet higher quality standards.
Another reason for the decline in exports is a weaker yuan to the dollar. China has let the yuan slide about 4.5 per cent this year against the greenback as its trade war with the US continued. The depreciation has cut imports from Vietnam as Vietnamese goods become more expensive to Chinese buyers.
It must be said that last year, agriculture exports had risen 9.6 per cent over 2017 to more than billion. The top five export categories with value over US billion each were shrimps, fruits and vegetables, cashew, coffee and wood.
Success in agricultural exports show that Vietnam is the big winner in the trade war between the United States and China. According to economists, this year the country’s economy will grow at a faster pace than all other Southeast Asian economies.
Thanks to the trade tensions between the world’s two largest economies, the Vietnamese government has been able to capitalise on the problems affecting supply chains as more and more manufacturers move to Vietnam to avoid high tariffs.
At the same time, foreign direct investment and the manufacturing sector remain two important drivers in the country's economic growth.