As such, it is least affected by US tariffs on Chinese goods, it adds. The report on the impact of escalating U.S.-China trade tensions recently released by securities firm MB Securities (MBS), quotes Malaysian bank RHB as saying only 2.2 percent of Vietnam’s total export value is used as input material for China’s export production. This number is much higher for other ASEAN countries, such as the Philippines, Malaysia, and Indonesia, who respectively have 16.9 percent, 11.4 percent and 11 percent of their exports involved in the value chain of Chinese exports. As a result, Vietnam will not be much affected by last Friday's U.S. action to raise tariffs on $200 billion worth of Chinese imports from 10 percent to 25 percent. However, the report also warned that trade tensions could stifle growth in both U.S. and Chinese economies, dragging down demand for Vietnamese goods in both markets. In 2018, Vietnam exported a combined $90.4 billion worth of goods to the … [Read more...] about Vietnam least affected ASEAN member by US-China trade pact
Indonesia china trade deficit
A view of Indonesian capital Jakarta (Photo: FIM) Hanoi (VNA) - Indonesia posted its widest monthly trade deficit in history in April as exports plummeted, while the pace of fall in imports was slower than expected. According to data from Refinitiv Eikon data company, the resource-rich country recorded its first trade deficit in three months at 2.5 billion USD in April, also the highest ever to date. Indonesia’s exports in April were at 12.60 billion USD, down 13.10 percent year-on-year, while its imports fell 6.58 percent to 15.10 billion USD. Wisnu Wardana, an economist from Bank Danamon in Jakarta, said the data makes the Bank Indonesia (BI) even less likely to ease monetary policy in the near term. The BI has been pressured to cut interest rates after the US Federal Reserve turned dovish. China, Indonesia's biggest trade partner, contributed 1.9 billion USD to the deficit in April. Indonesia had a 704 million USD surplus in its trade with the US in the same month. … [Read more...] about Indonesia records biggest trade deficit ever in April
Jakarta, Indonesia. (Source: FIM) Jakarta (VNA) – Indonesia suffered a trade deficit of over 2.4 billion USD with China in January, up 32 percent from the same period last year, according to the Central Bureau of Statistics (BPS). Suhariyanto, head of the BPS, attributed the deficit to the slowdown in China's economic growth that affected demand for raw materials and some Indonesian exports to China. The rate of non-oil and gas products in Indonesia’s exports to China was reduced to 13.52 percent (1.71 billion USD) in the first month of 2019, compared to 14.51 percent (1.92 billion USD) posted in January last year. Besides, Indonesia’s oil export to China decreased by 4.36 percent to 184.6 million USD in the reviewed month. Also in January, Indonesia’s trade balances with Thailand and Australia also posted a deficit at 261 million USD and 208 million USD, respectively. However, Indonesia had a surplus with the US (805 million USD), India (650 million USD) … [Read more...] about Indonesia’s trade deficit with China increases in January
VietNamNet Bridge - Multinationals will have to think carefully about whether to relocate to Vietnam to avoid any negative impact from the US-China trade war, experts say. Multinationals will have to think carefully about whether to relocate to Vietnam International and Vietnamese experts have predicted that there will be a wave of ‘US-China trade war refugees’ coming to Vietnam. As the US has imposed higher taxes, Chinese goods have become less competitive in price in the US market. In such a context, manufacturers can continue making products in Vietnam for export to the US without having to bear high tax rates. Vietnamese experts think that foreign investors will flock to Vietnam in the context of the trade war but wonder if Vietnam is capable of absorbing the huge investment capital flow in the time to come. Nguoi Lao Dong newspaper quoted Takahisa Onose from the Japanese Entrepreneurs Association in HCM City as saying that most Japanese enterprises … [Read more...] about Will foreign investors relocate to Vietnam during the US-China trade war?
Manufacturing activity remained relatively solid in major Asian economies such as China and Japan in April, but exports showed signs of weakness across the region, a worrying development given heightened Sino-U.S. trade tensions. High-level U.S. and Chinese officials meet in China this week, with trade expected to be top of the agenda as both sides have threatened reciprocal tariffs on hundreds of billions of dollars worth of imports. The meetings’ outcome could be crucial for the outlook for Asian exporters as Purchasing Managers Index (PMI) surveys of factory activity are already pointing to a slowdown. “What we’re seeing is a cyclical soft patch in exports after a very strong rise last year,” said Dong Chen, senior Asia economist at Pictet Wealth Management. “Without considering the potential trade war, we’re not very worried about it, we think it’s fairly normal. But if we think about the trade war ... then the outlook is quite uncertain. … [Read more...] about Asia sees signs of export weakness before key US-China trade talks