DBS Bank: US-Vietnam trade agreement reduces risks, but lacks details.

DBS Bank's senior economist Chua Han Teng said that the US-Vietnam trade agreement has reduced the risk of Vietnam's economic growth, but may not be able to prevent an economic slowdown in the coming quarters. According to the agreement, US goods will enter Vietnam duty-free, in exchange for which Vietnamese goods will be subject to a 20% tariff, and goods from other countries exported through Vietnam to the US will be subject to a 40% tariff. However, details are scarce. Firstly, the explanation for transshipments is unclear. Although the 20% tariff on Vietnamese goods by the US is much lower than initially feared, it still represents an escalation of trade tensions. Vietnam remains heavily reliant on the US market, with goods shipped to the US accounting for nearly 30% of Vietnam's exports.