China’s factories in Vietnam are struggling after the country threatened to impose 46% tariffs on goods from Vietnam, sparking fears of a global trade war. The tariffs, which have not yet come into effect, have already caused significant disruption to businesses like Jayson Wu’s furniture factory in Hanoi.
Wu’s business has cancelled all US orders and brought production to a standstill due to the uncertainty. “Where can I go now?” he said, expressing his concern about relocating the factory. Many Chinese companies in Vietnam are facing similar dilemmas as they rely on low labor costs, cheap rent, and stable trade relations with China.
Vietnam had previously offered a way for Chinese businesses to avoid US duties aimed at China, but it is now also facing tariffs. The uncertainty has left many wondering what their next move will be, especially since most Southeast Asian countries are also facing tariffs.
Source: https://www.scmp.com/economy/china-economy/article/3305625/chinese-factories-vietnam-hammered-us-tariffs-where-can-i-go-now