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Are U.S. Tariffs Turning Vietnam into an Export Powerhouse?

Hunter L. Clark and Brendan Kelly

No 20190814, Liberty Street Economics from Federal Reserve Bank of New York

Abstract: The imposition of Section 301 tariffs on about half of China?s exports to the United States has coincided with a fall in imports from China and gains for other countries. The U.S.-China trade conflict also appears to be accelerating an ongoing shift in foreign direct investment (FDI) from China to other emerging markets, particularly in Asia. Within the region, Vietnam is often cited as a clear beneficiary of these trends, a rising economy that could displace China, to some extent, in global supply chains. In this note, we examine the data and conclude that Vietnam is indeed gaining market share, but is too small to replace China anytimesoon.

Keywords: China; Trade; Vietnam (search for similar items in EconPapers)
JEL-codes: F00 (search for similar items in EconPapers)
Date: 2019-08-14
New Economics Papers: this item is included in nep-int and nep-sea
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