Vietnam attracts soaring Chinese investment as US trade dwindles

With a surge in Chinese investment, Vietnam has become a hotspot for economic activity this year, as figures indicate a decline in US trade and spending. Vietnam’s strategic location along the South China Sea makes it a vital link in global supply chains, particularly for Chinese components and American consumers.

September saw United States President Joe Biden elevate diplomatic relations with Vietnam, following a year of rigorous diplomatic endeavours. This development placed the US on par with China in Vietnam’s diplomatic ranking. This diplomatic manoeuvre by the US is met with a forthcoming visit by China President Xi Jinping, who is expected to fortify ties further with Vietnam.

While it remains uncertain whether the US or China has secured a more significant diplomatic upgrade, economic indicators suggest a Chinese advantage. This is partly due to US trade policies and…