Credit photo: Good Free Photos
By Niranjan Marjani
The pandemic is expanding strategic competition between China and Vietnam from the South China Sea into the economy. Vietnam could see a boost to its economy as the COVID-19 crisis wears off and companies look to shift their operations out of China.
- COVID-19 will likely alter relations between Vietnam and China, from conflicts in the South China Sea to economic competition
- COVID-19 has caused disruptions to supply chains in China, pushing companies to look for an alternative location, and Vietnam is emerging as one of the preferred alternatives
- Relations between Vietnam and China are currently dominated by competition for strategic space in the South China Sea
- Many US companies have already left China due to the impacts of the trade war between the two countries and that trend is likely to continue as a result of the COVID-19 crisis
- China’s image has suffered on account of its handling of the crisis and incidents of supplying faulty medical equipment to a number of countries like Italy, Spain, the Netherlands and Turkey. With businesses moving their operations from China to Vietnam, economic competition between the two countries will become a major factor in their bilateral engagements
- As a result of the COVID-19 crisis, businesses are looking for options outside China to set up operations and Vietnam has presented itself as a preferred investment destination
Source: ASEAN Today
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