Vietnam is perhaps the only country that's looking at the growing trade tensions between China and the United States with a certain level of optimism. Global manufacturers are seeking new supply chains in response to tariffs and Vietnam, with its large population, low labour costs (relative to China) and existing manufacturing base, is well placed to capitalise on the trend.

Vietnam's foreign direct investments (FDI) grew by 9 per cent last year to reach US$19.1 billion (S$26.3 billion), the sixth straight year of growth. Major manufacturers and retailers, such as Foxconn, Samsung, Nintendo, Apple and Fast Retailing, have shifted or are planning to shift production to Vietnam. Chinese companies are getting into the game too: Investment from Chinese companies more than doubled last year, moving China from the fifth-to the third-largest source of foreign investment.