Vietnam'S Goods Are Being Repatriated By The US And Europe, And The Economy Will Not Go Backward, But Will The World Factory Wake Up?

China has always been recognized as the "world factory", but in recent years Vietnam has been "eager to move" and has always wanted to win the name of "world factory".

In recent years, Vietnam has constantly strengthened its ties with the western countries, and indeed has obtained a large number of orders from the United States and the European Union. At first glance, there is indeed a demeanor of "manufacturing power". Vietnam saw only the scenery of the big manufacturing country, but did not see the risk of the big manufacturing country.

Vietnam's main exports to the United States and the European Union are concentrated in textiles, and Vietnam exports large quantities of textiles to the United States and Europe every year. However, due to the recent impact of new crown pneumonia, global import and export businesses have been affected. Especially in Vietnam, which is highly dependent on the US economy, economic development is likely to decline.

We know that Vietnam has been imitating China in recent years, hoping to become the next "world factory". In the year 2019, quite a number of enterprises moved factories to Vietnam, which also increased the manufacturing industry in Vietnam. The relationship between Vietnam and the United States is not simply a simple relationship between the exporting country and the importing country.

Vietnam not only relies on the United States to export large quantities of textiles, but also relies heavily on the US dollar. The US economy is seriously damaged, and Vietnam, which is highly dependent on the United States, is also unable to stay aloof. So far, the United States and the European Union and other countries have formally informed Vietnam that they will suspend receiving goods from Vietnam for at least three weeks.

It is worth noting that even the goods that Vietnam has sent to the United States and the European Union are intercepted by the US and European Union customers and "repatriated" to Vietnam. That is to say, Vietnam has at least lost more than a month's export revenue, and there are orders for transportation on the road.

For Vietnam, such a degree can be regarded as a "catastrophe". The United States and the European Union are Vietnam's two most important textile export markets. In 2019, Vietnam's exports to the United States amounted to nearly US $15 billion, accounting for 45% of the total volume of clothing and textile exports and nearly half of its total exports.

In the first two months when the United States and the European Union announced their stop of imports, Vietnam exported US $2 billion 250 million to textiles and clothing in the United States, accounting for 48% of the total value of Vietnam's textile exports. Now the United States and the European Union have announced a moratorium on exports, and Vietnam's textile export market has been cut off.

Moreover, because the US and the EU have suspended imports for an indefinite period, Vietnamese textile enterprises can not feed all their employees, and a large number of workers are facing the predicament of unemployment. This is a disaster for Vietnam, which has just been improving, let alone become the goal of the "world factory".

It is worth noting that Vietnam's economic growth has been very fast in recent years, but this is indispensable for us debt. In order to preserve itself, the United States opened the "banknote printing machine" mode to run the water in a crazy way. To some extent, Vietnam has become a victim of the United States.

Vietnam's manufacturing is facing unprecedented challenges. In 2019, it was still working towards the goal of "world factory" and was returned to its original form in 2020. According to the current development, Vietnam's economy is very likely to decline. In the short run, I am afraid we can not achieve the dream of "world factory".