Why is Vietnam a wise investment opportunity today?
Vietnam offers favorable conditions for foreign investors for numerous reasons: Strategic location, ample workforce with competitive labor costs, and a relatively open environment for FDI to only name a few. These factors make Vietnam an attractive destination for businesses looking to expand their operations or import quartz.
What’s the COVID-19 situation in Vietnam now?
Vietnam has moved from a zero covid approach to a living safely with virus approach. As of December 16, 2021, Vietnam has fully vaccinated 61.2 percent of its population compared to less than 3 percent in July, which is a massive achievement considering where Vietnam was a few months ago. Major cities such as Hanoi and Ho Chi Minh City have implemented measures to efficiently live with the virus. The government is also progressively reopening the economy. This includes a gradual reopening of tourism, while entry regulations are being simplified for businesspeople.
What is the political situation in Vietnam?
The political situation in Vietnam has been stable in recent years, and the country has maintained good relationships with countries around the world. Foreign enterprises in Vietnam believe in business prospects and have positive expectations for Vietnam’s economic growth in the coming time.
In recent years, Vietnam has emerged as a promising destination for many regional and international investors thanks to its strong annual economic growth. The country’s strategic location and ample resources make it an attractive investment destination, and the government is committed to creating a favorable business environment. In addition, Vietnam’s young population offers a large potential workforce, and the country is also making significant investments in education and training. As a result, the prospects for Vietnam’s economy are very positive, and foreign businesses are confident in the country’s future.
Tax incentives granted for Quartz products between Vietnam and the U.S.
Undeniably, Vietnamese quartz products have special advantages for tax incentives when exporting to the U.S. It came from the U.S. anti-dumping law applied to some major exporting countries to this market.
The government imposes anti-dumping duty on imports when it believes that the goods are being “dumped” – through the low pricing – in the domestic market. One of the countries most affected by this law is China, which was once the largest exporter of this product in the U.S. market.
However, in May 2019, the United States International Trade Commission (USITC) announced the final results on Chinese Quartz products, the Anti-dumping duty is 336.69%, and the anti-subsidy duty is 45.32%. This has led to exporting from China to the U.S. rapidly falling from $581 million in 2018 to nearly zero in 2020.
At present, India and Turkey have also benefited from tariffs on Chinese quartz. However, not long after that, in July 2022, A U.S. Commerce Department review of unfair-trade tariffs on quartz surfaces from India recommended a stunning increase from less than 4% to more than 160% for most manufacturers. The proposed 161.51% tariff would affect 51 Indian companies producing and/or exporting quartz surfaces to the United States (according to stoneupdate.com). Besides another Asian country, Malaysia is also subject to anti-dumping investigation.
By contrast, this product exported from Vietnam has not yet been subject to those taxes by the U.S. government. This opens up great opportunities for Vietnamese suppliers to increase their import market share, and it helps to reduce competitive pressure on prices and increase profit margins in this market. As a result, exports to the U.S. increased sharply by 189% in 2019 and 71% in 2020. Vietnam’s quartz export market share also increased from 2.7% to 14.6% in 2020. Having said that the U.S. is Vietnam’s main market, specifically Vinaquartz. Therefore, the company is expected to benefit a lot from the above events and needs to seize this potential opportunity to boost export volume.
A Look at the Future of Quartz Slabs from Vinaquartz
The Vietnamese market, as well as Vinaquartz increasingly investing in technology, diversifying product models along with keeping the most competitive prices, thereby helping to create an advantage in capturing market share in the US. Another key point to remember, after more than ten years of development, Vinaquartz has built a vast network of distributors in the US, such as MSI, Arizona Tile, Bedrosian, etc. With the stable quality, improved, and diversified investment models, it is increasingly trusted by partners and received for large orders.
Find more about us: Vinaquartz – Vietnam’s Leading Artificial Stone Manufacturer
Vinaquartz’s designs and colors are produced according to the world’s latest interior trends, with their sophistication reflected on each stone vein, “quality in every detail” suitable for most customers’ tastes. With competitive prices, products ensure standards of quality, and product designs are the most strict demanding for building materials markets.
Quartz slabs from Vinaquartz are committed to 100% Vietnamese materials and production lines, with no anti-dumping & low tariffs. Buying at Vinaquartz, customers can check samples and test 100% before choosing and signing a contract. We are always ready to show you our company’s commitment to excellence.
Thanks to the continuous improvement in quality and competitiveness, as well as the hard work of the Vinaquartz team, we have significantly increased our export volume to the US in recent years. We are confident that Vinaquartz will continue to be a leading supplier of quartz in the future, and we look forward to continued success in this important market.