Hanoi-based SSI Research has revealed that Vietnam, a steady economic out performer in Asia, expects its GDP to grow by around 6.8 per cent this year. This growth could be attributed to spillover from the Sino-U.S. trade dispute and a discovery that its economy was previously larger than once thought.

Daunted by US tariffs on goods shipped from China, several manufacturers are moving to Vietnam. They can produce and ship the same goods from just across the border without paying US tariffs on a total $550 billion in goods made now in China. Low labor costs, pro-investment policies and lack of trade friction with the United States had already made Vietnam attractive to foreign factory investors.

Adding to its appeal, Vietnam is on track to enter a trade pact with the European Union after joining an11-country Trans Pacific Partnership free trade deal this year. Also, Vietnam is encouraging investment by software and high-tech hardware.