b'Trumps ire, who described Vietnam asChasinglowlaborratesmaybeaVietnamwillofferpotentialbig almost the single-worst abuser of ev- fools errand in the long run, as laborgrowthforexportersinthecoming erybody. Vietnams trade surplus withrates will presumably rise everywhereyears,saidStevenGundlach,aDB the U.S. has increased from $20 billionas the global economy develops. ButSchenkerexecutivevicepresident. in 2014 to $39.5 billion last year. TheVietnamisstilloneofthoseplacesVietnamsboomingbusinessextend-problem unmasked by the most recentwhere lots of people are still scram- ing from manufacturing to the export-tariff case is that increases in importsbling for entry-level work, accordingingofmobilephonesandfurniture from Vietnam represent not only effortsto Singleton. shows no signs of slowing. The country at tariff avoidance but tariff evasion. has a good diversification of products Logistics infrastructures will have toto export and continues to increase its Vietnameseofficialssaytheyarebe improved if Vietnam is to further de- exports into the U.S. market.working on reducing the trade surplusvelopitsmanufacturingprowessand with the U.S., according to publishedthere are signs that logistics companiesThe shift into Vietnam of manufactur-reports, and are cracking down on Chi- arebeginningtomakethoseinvest- ing from China has been part of a con-nese manufacturers who are reroutingments. At this point, many shipmentstinued, normal migration of industry to their goods through their country. Theoriginating in Vietnam are consolidat- lower-cost venues, while the accelerat-U.S. Embassy in Hanoi announced thated in Shanghai, Hong Kong, and Sin- ed pace of investment has been brought it has conducted talks with Vietnamesegapore,leadingtotransittimesfromon by the Trump tariffs that have been authoritiesandthatithopes VietnamVietnam as much as double those fromdirected at China. Vietnam may contin-will take steps to address U.S. concerns. China.ue to benefit from the U.S.-China trade war, but exporters and importers should ThetariffswillhurtVietnam,Vietnam is seeing rising incomes andbearinmindthattheDepartmentof opinedChangShu,chiefAsiaecon- improving infrastructures, according toCommerceandU.S.Customsareon omistatBloomberg,speakingoftheJohn Carr, president and CEO of MIQthe lookout for cases of tariff evasion.latest round, on steel, among the fewLogistics.Thisisoneofthereasons countries that have benefited from tradewhy we are building up our presence tensions between the U.S. and China. in Vietnam, he said.Cost Versus Quality New Services to Match U.S.importershaveendeavoredtoSourcingdiversify their source of supply to low- The planning processes required for er-cost countries like Vietnam even be- sourcing changes mean that companies fore the tariff wars started, citing risingcannot shift their sourcing patterns on costs in China. But many have founda dime, nor can ocean carriers revamp thatitshardtoduplicatethequalitytheiroperationsquickly.Someofthe andscaleofmanufacturingcapacityshiplineshavetweakedtheirservice that the Peoples Republic has to offer.offeringsandportcallstobetterac-Logisticsalsopresentsaproblem,ascommodate increased volumes out of there are fewer transportation options,Southeast Asia,accordingtoSriLax-leading to longer transit times and lessmana, vice president for global ocean flexibility for supply chains, but thereservices at CH Robinson.are signs of improvement on that front.According to John Singleton, CEO ofIf the tariff war continues to esca-Wen Parker Logistics, 20% to 25% oflate, he said, you may see more direct productioncapacitycurrentlylocatedservices out of Southeast Asia.in China will eventually shift elsewhereAccordingtoarecentreportfrom overaperiodofyears.CompaniesAgilityLogistics,IndiaandChinare-still deep in China are those with pricemaintheleadinginvestmentdesti-pointsthatcanwithstandtariffsandnationsforthelogisticsindustry.But higher costs and that cant find the de- Vietnam leads a second group that is sired quality elsewhere yet, he said. drawing increased interest from the in-dustry, thanks to its diversity of exports.2019 Collection Breakbulk Shipping 21'