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Economics Update – Spotlight amidst shadow of the trade war

Economics Note 31/05/2019    146

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  • A trade deal remains elusive given the re-escalation of the US-China trade war.
  • Vietnam has proven to be a beneficiary of the ongoing trade tensions, with solid export growth and robust registered FDI from China.
  • Risks include: 1) a potential full-blown trade war; 2) sharper-than-expected Rmb depreciation and 3) upside risks to inflation in 2020F.

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