Japan and china

The current ongoing pandemic is also providing the time to ease pressure on Vietnamese trade as restructuring of the Global Supply Chain is being dealt with. Only those countries that are well-prepared and have successfully controlled and contained the pandemic will be able to see a good outcome and macroeconomic stability in the future by an improved marketing strategy. Break in supply chain The repeated closure of the border, and immigration restrictions during the current pandemic have caused trade activities and global value chains to be disrupted or broken, especially the important supply chains to the US, China, Japan, Germany, and the European Union (EU). All these countries are reeling under the havoc being caused by the Covid-19 pandemic. At the same time, manufacturing and business facilities of 1,000 of the world's largest suppliers have upto 12,000 units in Covid-19 quarantined areas, most of which are located in China. This explains why there is a breakdown in the Global Value Chain (GVC) that is seriously affecting trade activities for almost 50% of international trade. In addition, the application of digital transformation in manufacturing and business activities has made countries increase automation, in order to improve production capacity and withdraw from the GVC, so as to localize the economy. The disruption of Global Supply Chains is also due to sanctions inflicted during the US-China trade war, along with rise of protectionism. The industries in the world are overly dependent on China, so the leading countries tend to withdraw from what is considered the factory of the world. Closer linking of the supply chain with the value chain is essential for ease of control. The US-China trade war had partially initiated and spurred this process when China thought it needed a strategy to undermine America's leading role in global trade. The pandemic is not the only reason that has caused a change in the structure of the Global Value Chain, …

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GE is supporting emerging economies across the global tackle climate change Our ability to overcome the climate change challenge and achieve the results we so urgently need will not happen only through events such as the Leaders Summit, nor during government policy meetings, or in corporate boardrooms. While these are essential to alignment and making commitments, the action to achieve these goals will happen in the local markets. Where the rubber hits the road Success actually occurs “where the rubber hits the road” – in the homes, factories, industrial facilities, power plants, and office buildings where sustainable, low- and zero-carbon technologies, systems, and practices are deployed. This needs to happen in a diverse array of geographies, climates, demographics, and economies. Some countries are densely populated; others have vast uninhabited areas. Some regions get all their water from desalination and require constant air conditioning for brutal summers; others have rivers that run full year-round, and their major concern is heating during freezing winters. These different conditions not only impact each country’s response to climate change, but also how they approach the broader “energy trilemma”. This trilemma reflects the challenge countries face to address sustainability, while at the same time balancing their needs in two other critical areas: energy equity (often related to affordability) and energy security and reliability. Even as the world rallied this week around the need for concerted action, the path taken by each country and community will look different. What that means, quite simply, is that effective climate action – particularly in the context of the energy trilemma – will need extensive localisation. This local approach requires technology and an understanding of the local environment and market. That is why at this moment of action, we, as GE, will build on our work with customers and governments across the globe, and …

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More and more US-based businesses find Vietnam a good replacement for China Hong Kong-based QIMA specialised in providing supply chain compliance solutions has just released a survey of over 700 companies across the globe. Of this, the number of US-based respondents selecting the Southeast Asian country as the leading sourcing location has doubled against four years ago, to 43 per cent in early 2021. Similarly, 25 per cent of EU companies also listed Vietnam as one of the three leading sourcing markets in this year’s first quarter, down 15 per cent on-year but up 11 per cent against the same period of 2019. Of all establishments switching to suppliers in new geographic regions last year to avoid COVID-19 impacts, nearly one-third revealed that the 100-million population country is one of their best options. For US-based business, the rate was even higher, at 40 per cent. QIMA also forecast the trend to continue this year. Of the companies asked for finding new suppliers over the next 12 months, 38 per cent of US-based establishments and 28 per cent of those from the EU stated that they are planning to relocate some sourcing to Vietnam or buy more from current suppliers there. On the other hand, only 6 per cent of US-based brands and 11 per cent of those from the EU were looking for suppliers in China. Also, US-based respondents showed some signs of dissatisfaction with Chinese sourcing. While one-third of them are planning to purchase more from Chinese suppliers in 2021, almost as many reported plans to completely stop buying from the market. Nevertheless, words and actions often differ. Pointedly, in the survey, 73 per cent of companies said they had plans to look for new suppliers in 2020 but only 38 per cent were able to follow through on those schemes. For brands headquartered in the US, 93 per cent declared to diversify supply chains in early 2020 but only 49 per cent carried out these plans. By Huong Anh …

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