The US removed the quotas on the on textile and apparel imports and besides that an agreement was signed in the year 2007 with the US, which were the Trade and Investment Agreement. The above agreements resulted in the United States becoming one of the major exporting countries for Vietnam and hence, any recessionary activity experienced in the US would have a great affect on Vietnam.
The present recession has had a huge impact on Vietnam not only in terms of the fall in FDI levels but also due to the fall in exports and increased competition from the domestic producers of the United States.
The trade relationship between Hong Kong and United States has been quite strong as the US has strong economic ties with this country. It has a number of bilateral trade agreements and the US exports to Hong Kong totaled 20. 7 billion while it is also one of the largest investors. Therefore, any recessionary activity would have a great impact on the Hong Kong trade activity and its exports particularly.