3 ms·

In what way is the US about to make the Vietnam rich? I have not heard of this.

adventured 9y ago
US imports from Vietnam, 2003: $4.5 billion US imports from Vietnam, 2017: $46 billion To put that last figure into context, that's equal to the US imports from France, which has a $2.5 trillion economy (~22 times larger than Vietnam), and is nearly equal to the imports from the UK. Extrapolate that forward, with the assumption of a slowed rate of growth. It's the exact same way the US made Japan and South Korea rich, through massive imports, capital investment, and the corresponding industrial build-out. US imports from Vietnam will be close to equal to 25% of their entire economy this year. Vietnam's present economic boom, is almost exclusively due to the huge boom in US imports. The US is building out their industrial capability, which will spur further build-out and advancement, and on it will cycle. China is an economic competitor with Vietnam. They of course also have a long history of not liking each other. The development of Vietnam makes both practical sense for the US in terms of manufacturing costs, and strategic sense to build-up local rivals to China (or more generally strengthening the region against a Chinese hegemony in Asia). All the US has to do is point some of its import demand away from China and at Vietnam or other local nations. China's manufacturing costs are far higher now than they used to be, they're non-competitive in many things now on cost. Vietnam has even begun to steal away large volumes of tech manufacturing, for eg smartphones. It's further worth noting, the trade with Vietnam is about as one-way as it gets (and note that the US isn't complaining about it, that's because it's strategically desirable for now to rapidly advance Vietnam). Vietnam only imported $8.1 billion worth of US goods in 2017. So Vietnam is being showered with a flood of dollars. That will serve two outcomes for the US: it continues to bolster the US dollar's global role, and Vietnam can purchase US treasuries with their mountain of dollars, as Japan and China did and for the exact same reason.
- mikk14 9y ago
  Well... China imports from Vietnam, 2003: $1.63 billion [0] China imports from Vietnam, 2016: $35.6 billion [1] Seems in the same ballpark area to me as the US numbers. Your theory that "Vietnam's present economic boom, is almost exclusively due to the huge boom in US imports" doesn't check out with these numbers. [0] http://atlas.cid.harvard.edu/explore/?country=239&partner=undefined&product=undefined&productClass=HS&startYear=undefined&target=Partner&year=2003 http://atlas.cid.harvard.edu/explore/?country=239&partner=un... [1] http://atlas.cid.harvard.edu/explore/?country=239&partner=undefined&product=undefined&productClass=HS&startYear=undefined&target=Partner&year=2016 http://atlas.cid.harvard.edu/explore/?country=239&partner=un...

US imports from Vietnam, 2003: $4.5 billion US imports from Vietnam, 2017: $46 billion To put that last figure into context, that's equal to the US imports from France, which has a $2.5 trillion economy (~22 times larger than Vietnam), and is nearly equal to the imports from the UK. Extrapolate that forward, with the assumption of a slowed rate of growth. It's the exact same way the US made Japan and South Korea rich, through massive imports, capital investment, and the corresponding industrial build-out. US imports from Vietnam will be close to equal to 25% of their entire economy this year. Vietnam's present economic boom, is almost exclusively due to the huge boom in US imports. The US is building out their industrial capability, which will spur further build-out and advancement, and on it will cycle. China is an economic competitor with Vietnam. They of course also have a long history of not liking each other. The development of Vietnam makes both practical sense for the US in terms of manufacturing costs, and strategic sense to build-up local rivals to China (or more generally strengthening the region against a Chinese hegemony in Asia). All the US has to do is point some of its import demand away from China and at Vietnam or other local nations. China's manufacturing costs are far higher now than they used to be, they're non-competitive in many things now on cost. Vietnam has even begun to steal away large volumes of tech manufacturing, for eg smartphones. It's further worth noting, the trade with Vietnam is about as one-way as it gets (and note that the US isn't complaining about it, that's because it's strategically desirable for now to rapidly advance Vietnam). Vietnam only imported $8.1 billion worth of US goods in 2017. So Vietnam is being showered with a flood of dollars. That will serve two outcomes for the US: it continues to bolster the US dollar's global role, and Vietnam can purchase US treasuries with their mountain of dollars, as Japan and China did and for the exact same reason.

mikk14 9y ago
Well... China imports from Vietnam, 2003: $1.63 billion [0] China imports from Vietnam, 2016: $35.6 billion [1] Seems in the same ballpark area to me as the US numbers. Your theory that "Vietnam's present economic boom, is almost exclusively due to the huge boom in US imports" doesn't check out with these numbers. [0] http://atlas.cid.harvard.edu/explore/?country=239&partner=undefined&product=undefined&productClass=HS&startYear=undefined&target=Partner&year=2003 http://atlas.cid.harvard.edu/explore/?country=239&partner=un... [1] http://atlas.cid.harvard.edu/explore/?country=239&partner=undefined&product=undefined&productClass=HS&startYear=undefined&target=Partner&year=2016 http://atlas.cid.harvard.edu/explore/?country=239&partner=un...