Vietnam won’t let go of the global economy

THE fortitude of the world economy is an eye-opener. Tariffs have not resulted in the recession widely feared when US President Donald Trump imposed them in April. Some of the most vulnerable nations are not only coping, but doing pretty well. Just look at Vietnam.

Is it a case of bullet dodged or delayed impact? Vietnam’s experience tells us a lot about the trade saga. If the outlook begins to deteriorate in a meaningful way, we will see it early there. The communist-led nation has become thoroughly intertwined with the fate of global capitalism.

Growth ought to be under siege – on paper. The government embraced a development strategy that hinged on attracting supply chains in apparel, furniture and low-cost production, and then began moving up into technology. In doing so, it learnt from the experience of China and emerging market darlings of an earlier generation.