The Vietnam Stock Index surged more than 4.5% after the report of its government aiming to crackdown on Chinese goods that are produced in Vietnam, which then proceed to being shipped to the U.S. with “Made in Vietnam” labels, according to a report by Reuters.
This offer comes at a time when senior U.S. officials, including White House trade advisor Peter Navarro, have voiced concerns about this practice. Navarro explicitly stated that “China uses Vietnam to tranship to avoid the tariffs.”
Vietnam is reportedly the first to announce its resolution after the “Liberation Day” on April 2. The country was willing to cut import tariffs of U.S. goods to zero. Moreover, Vietnam is expecting to increase its procurement of American goods, including defense and security equipment, and has formally requested a postponement on the application of U.S. tariffs.
