The contentious U.S.-China trade relationship is gradually turning into a technological confrontation. Vietnam is seen as one of the countries to receive a wave of hi-tech manufacturing shift, especially for the semiconductor industry, said Professor Dr. Vo Xuan Vinh from the University of Economics HCMC, in an interview with The Saigon Times. Reasons for limitations
The Saigon Times: The World Bank’s report, “Vietnam 2024: Uplifting Trade in a Changing World,” highlights several issues in Vietnam’s export sector, including revenue imbalances, weak connections between FDI and domestic businesses, quantity-focused growth, and low added value. What is your view on this situation? Is this a necessary stage for Vietnam’s economic development?
Prof. Dr. Vo Xuan Vinh: In reality, most populous countries, such as China and India, or nations with conditions similar to Vietnam, like Malaysia, have had to undergo a phase of international trade development driven by labor-intensive exports, primarily led by the FDI sector. As a developing economy, Vietnam initially adopted highly attractive policies to attract FDI, including generous tax and land rental incentives. Dealing with the labor surplus—primarily low-skilled and unskilled workers—was a pressing need for an economy transitioning from a centrally planned system. This, coupled with the demands of […]
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