Analysis of Vietnam’s Response to the US-China Trade War in Times of Pandemic

DOI

10.2991/978-2-494069-65-7_58How to use a DOI?

Keywords

Vietnam; US-China trade war; FDI; Foreign Economic Policy; multilateralism

Abstract

The US-China trade war and the COVID-19 Pandemic are becoming major disruptions to global supply chains (GSC) making businesses to consider diversification strategies instead of relying on their current suppliers. China, which for the past decade has been the center of GSC traffic, will be avoided as doing business with China is getting more and more expensive. On the other hand, Vietnam has benefited from being a destination for diversion of import sources and soaring foreign direct investment (FDI) flows to Vietnam. As a global challenge, the COVID-19 pandemic demands the strengthening of multilateralism and global partnerships amidst the protectionist turmoil that has occurred between the US and China. This article analyses on how the Vietnamese government’s strategy in making foreign economic policy decisions in response to the US-China trade conflict, especially during the COVID-19 pandemic. This research is a qualitative research, and the data is obtained from an intensive literature review. The study found that Vietnam actively participated in GSC which emerged as a center for clothing and electronics manufacturing (especially smartphones). Empirically, Vietnam has become one of the main destinations for FDI inflows due to its favorable investment environment and commitment to global integration through the framework of economic cooperation. Vietnam’s response is to implement international trade policies, establish new regulations on the digital economy, and commit to global integration. This research contributes to the concept of foreign economic policy decision making in the context of countries that are not involved but are affected by global phenomena. The research findings are expected to have a practical impact in the implementation of foreign economic policies in strengthening multilateralism and global partnerships.

Copyright

© 2022 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Fitri Fatharani
PY  - 2022
DA  - 2022/12/24
TI  - Analysis of Vietnam’s Response to the US-China Trade War in Times of Pandemic
BT  - Proceedings of the International Conference on Sustainable Innovation on Humanities, Education, and Social Sciences (ICOSI-HESS 2022)
PB  - Atlantis Press
SP  - 720
EP  - 730
SN  - 2352-5398
UR  - https://doi.org/10.2991/978-2-494069-65-7_58
DO  - 10.2991/978-2-494069-65-7_58
ID  - Fatharani2022
ER  -