U.S imports from Vietnam are flying high
According to consultancy IHS Markit, during the first nine months of this year, U.S. imports from Vietnam surged 34.8% year-on-year. However, in comparison, the U.S. imports from mainland China tumbled 13.4% within the same period of time
China, a behemoth in the industry next to the United States, is certainly ahead of Vietnam, but seems like Vietnam is claiming the business of China with the US to a certain extent.
According to Michael Ryan, who is the IHS Markit’s associate director of comparative industry service, the existing Tariffs were a major reason behind the U.S. imports from China going down. He further stated that Vietnam’s fastest growing export categories to the U.S. include computers, telephone equipment and other machinery, and the said products were in high demand when it comes to the US’s top imports from mainland China. In other words, CNBC believes that the Vietnamese exports of those goods to the U.S. may have replaced the descension of supplies between China and America.
“Simply, demand is outpacing the current ability to supply…Taken in combination, these factors are lengthening the delivery cycle to consumers and point to a drawn-out process of extricating operations from mainland China’s orbit,” said Michael Ryan.