LOGISTICS INDUSTRY UNDER TRUMP’S LEADERSHIP

In recent days, the logistics industry under Trump’s leadership has witnessed significant shifts, especially amidst escalating trade tensions with China. These factors not only present opportunities for Vietnam but also drive substantial changes in logistics activities, import-export, and international investment. The following article will provide an in-depth analysis of the key logistics trends in Vietnam during this period.

Strong Growth in Export Processing and Industrial Real Estate

In recent years, real estate in Vietnam’s export processing and industrial zones has seen a significant boom, particularly due to Chinese companies intensifying M&A (mergers and acquisitions) investments. Many brokers and large enterprises are continuously seeking opportunities to acquire import-export companies, creating an unprecedentedly vibrant market. The expansion and development of industrial zones not only meet production needs but also enhance logistics efficiency and the flow of goods in the region.

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Supply Chain Shift from China to Vietnam

The trend of shifting supply chains from China to Vietnam has become increasingly apparent and is expected to continue in the long term. Areas such as Binh Phuoc, Binh Duong, and Dong Nai hold great advantages with developed infrastructure, strategic locations close to key industrial centers, and major seaports. This supply chain shift benefits Vietnam’s logistics sector as transport, warehousing, and goods delivery activities increase significantly.

Attraction of Foreign Direct Investment (FDI)

Alongside the supply chain shift, foreign direct investment (FDI) inflows into Vietnam are growing stronger. Vietnam is now seen as an attractive destination for international investors thanks to its favorable geographical location, stable investment environment, and open investment policies. The increase in FDI not only boosts production capacity but also strengthens the logistics system with numerous projects in warehouse construction, transportation improvements, and the development of delivery services.

Advantages from U.S. and Vietnam Import Taxes

This event affects the logistics industry under Trump’s leadership, as Vietnam enjoys a significant advantage with export products to the U.S. subject to only 10-20% import taxes, while goods from China face tariffs exceeding 60%. This creates opportunities for Vietnamese exporters to expand their market in the U.S. and enhance competitiveness. Logistics companies play a crucial role in supporting the transportation and completion of export procedures, helping businesses take advantage of tax incentives and reduce costs.

U.S. Non-Participation in CPTPP: Competitive Advantage for Vietnam

The U.S. not joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) has provided Vietnam with a competitive edge in strengthening trade relations with CPTPP member countries. Thanks to CPTPP, many of Vietnam’s export products to these markets benefit from tariff reductions, lowering costs and increasing competitiveness. This motivates the logistics industry to develop rapidly to meet transportation and delivery demands.

Significant Increase in Trade Surplus with the U.S.

Vietnam’s trade surplus with the U.S. is reaching record levels, with $83 billion in 2023 and surpassing $88 billion in just the first nine months of 2024. This export increase translates into a surge in the demand for transportation and goods circulation, driving logistics industry development. Vietnamese logistics companies have rapidly expanded services, increased the number of shipments, and improved transportation processes to meet the growing demand.

Prospects of Peace between Russia and Ukraine

As the conflict between Russia and Ukraine is expected to conclude soon, the global logistics industry, including Vietnam, stands to benefit. The recovery and stabilization of supply chains could help reduce additional costs from trade disruptions, enabling Vietnam to maintain stable export levels and expand trade cooperation opportunities.

Export Growth in Vietnam’s Key Industries

Vietnam’s main export industries, such as textiles, wood furniture, seafood, stones, tires, and steel, have significant growth potential in the current favorable environment. These industries have demonstrated competitiveness due to improved product quality and production processes. The logistics sector will play an essential role in supporting transportation and optimizing supply chains to ensure export products reach international partners quickly and safely.

Exporters Benefit from Proof of Vietnamese Origin

Export businesses that can prove the Vietnamese origin of their products will gain considerable advantages, especially as many countries require clear standards of origin. Proof of origin helps Vietnamese goods overcome trade barriers and meet the requirements of free trade agreements, thereby increasing opportunities to access international markets.

High Exchange Rate, Increasing Profits for Export Businesses

In this context, the exchange rate of the USD against the VND is at a high level, bringing significant benefits to Vietnamese exporters when generating profits from foreign currency. A high exchange rate not only boosts revenue but also supports companies in expanding investments, developing products, and optimizing logistics processes.

Curtailing Transshipment to Evade Vietnamese Origin

One issue to watch is limiting transshipment to evade Vietnamese origin labeling. This not only affects the credibility of businesses but also reduces the competitiveness of Vietnamese products in the international market. The government has implemented strict control measures to prevent this situation, while also creating conditions for legitimate export businesses to grow sustainably.

Conclusion

The above article provides a comprehensive overview of the fluctuations and opportunities for the logistics industry under Trump’s leadership. From the development of industrial real estate, supply chain shifts, attraction of FDI, to macroeconomic factors and export advantages, Vietnam is seizing opportunities for robust growth in logistics and import-export. We are proud to have over 14 years of experience in the logistics field and will be your trusted partner throughout the journey.

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