Vietnam china

Kevin Coppel, Asia-Pacific managing director (left ) and Christine Li, Asia-Pacific head of research for Knight Frank in Singapore When the US-China trade tensions bubbled over in 2018, corporates found it increasingly difficult to carry out business in China due to sourcing uncertainties and rising costs. This trend only worsened in the face of the pandemic and resulting border closures. Businesses responded by pursuing opportunities to set up bases outside of China while still retaining a stake in one of the world’s strongest economies. The China+1 strategy thus emerged. It is based on diversifying its supply base into other countries in order to minimise the risk of disruptions arising from geopolitical tensions, trade wars and tariffs, as well as rising labour costs. These companies are not abandoning China but rather giving themselves options, enjoying the best of what China and other economies have to offer. In pursuit of the China+1 strategy, the spotlight is naturally … [Read more...] about Will Vietnam become a big geopolitical beneficiary?

Vietnam expecting to spend even more on imports - illustration photo Southeast Asia is facing rising inflation, a problem that is exacerbated by the failure of energy and food prices to fall. Last month, the Monetary Authority of Singapore (MAS) tightened monetary policy for the third time since October to deal with inflation that is expected to heat up. According to analysts, the MAS has redefined the midpoint of the popular exchange rate policy band and slightly increased the slope of currency appreciation to help the Singapore dollar strengthen against the currencies of other countries. However, the MAS did not change the width of its policy band – a move the institution usually would take when markets are volatile. As a result, the Singapore dollar rose about 0.5 per cent to $1.35 after the MAS’ move. The agency considered the possibility that core inflation would pick up sharply in the coming months, before being revised later this year, due to the sharp increase in … [Read more...] about Vietnam expecting to spend even more on imports

Petrol retail prices in the country have been adjusted many times over the past few months, Photo: Le Toan In Vietnam, gasoline prices continue to increase, and after the adjustment on May 11 by the Ministry of Industry and Trade (MoIT) and the Ministry of Finance, each litre of E5 RON92 petrol increased by 6.5 US cents to $1.26 per litre while RON95 climbed by 6.7 US cents to $1.30 per litre. On May 17, the price of US WTI crude oil remained at a high level of over $114 per barrel while Brent oil maintained its upward momentum at $114.28 per barrel. Before the next adjustment, which was due on May 21, petrol prices in Vietnam were forecast to continue to increase to higher levels. The ministries first adjusted gasoline prices on January 11 due to a decrease in global supply, production output by Kazakhstan and Libya, and oil inventories of the United States. According to Decree No.95/2021/ND-CP, effective from January, there will be three adjustments each month to the … [Read more...] about Vietnam riding the wave of inflationary unpredictability

Trung Kien, 33, from the northern province of Bac Ninh, said he has been looking for a luxury car with a price tag of around VND7 billion ($300,000) for a month, but found nothing to buy. He said he would have to wait for three to six months to get a popular luxury car delivered, due to shortage of components, especially semiconductors and chips. Over the last two years, supply from the world's largest producer, China, has been trickling due to impacts of Covid-19, resulting in a global shortage. Supply of luxury cars in Vietnam is hit the hardest, as brands focus on delivering orders to their major markets like the U.S. or European countries. Mercedes-Benz customers are said to wait for at least three months for some SUVs and S-class sedans, and up to a year for the ultra-luxury Maybach sedans and SUVs. Some locally made models, including E-class sedans and GLC SUVs, are also in short supply, so buyers will have to wait 1-2 months to get their unit delivered. Many auto … [Read more...] about Vietnam runs out of luxury cars

The survey covers more than 1,500 companies from six of the largest economies in the world, including China, France, Germany, India, the UK and the US – all of which have operations in Southeast Asia. The survey gauges their sentiment on doing business in Southeast Asia, with a particular focus on trade, digitalisation, and sustainability. On the advantages side, three out of 10 surveyed companies found Vietnam’s skilled workforce to be the most attractive feature of the market, while 27 per cent of respondents were attracted by the country’s optimistic economic outlook, competitive wage prices, and the resilience demonstrated by Vietnam during the pandemic. It is worth noting that 39 per cent of Indian companies favoured the market thanks to developed infrastructure and 49 per cent favoured Vietnam's supportive government and regulatory environment. About 36 per cent of US companies were very attracted by the opportunity Vietnam affords to test and develop new products and … [Read more...] about Indian investors likely to expand presence in Vietnam

Illustrative image (Photo: VNA) HCM City (VNA) - Up to 21 percent of Indian firms operating or intending to operate in Southeast Asia plan to expand their business in Vietnam in the next two years, and the ratio is 26 percent among Chinese enterprises , according to a HSBC survey covering more than 1,500 companies from six of the world’s largest economies – all of which have operations in Southeast Asia. Regarding advantages of Vietnam, three out of 10 surveyed companies pointed to skilled workforce, while 27 percent cited competitive wage prices and proven economic resilience in response to the pandemic. Currently, 39 percent of Indian companies stated they were attracted by Vietnam’s infrastructure, while 39 percent of US firms said that they are keen on opportunities to develop and test new products/solutions in the market. Particularly, 49 percent of surveyed firms, mostly from China, India and the US, said that they hope to make use of the EU-Vietnam Free … [Read more...] about Vietnam remains attractive to int’l investors: HSBC

Global food prices are expected to keep on rising this year due to the Ukraine conflict and other factors, Photo: Thanh Tung China’s National Bureau of Statistics (NBS) said on May 11 that the consumer price index (CPI), the main measure of inflation and retail sales, increased by 2.1 per cent on-year in 2021 due to the impact of the recession and skyrocketing energy costs and food prices. Data released by the General Administration of Customs of China on April 13 recorded a decrease in China’s imports for the first time since August 2020. In March, China’s imports fell 0.1 per cent on-year. Assoc. Prof. Dr. Vu Sy Cuong from the Academy of Finance warned last week, “Along with the conflict in Ukraine, China’s economic difficulties could exacerbate inflationary pressures in Vietnam.” China’s slowing growth is clearly felt by many manufacturing and export industries of Vietnam. Pham Van Viet, president of garment firm VitaJean Co., Ltd., said, “Restrictions on raw materials … [Read more...] about Global effects mar control of inflation

Illustrative image This has led to a new consensus from different development economies for the need to reduce dependency on one source and improve integration among various countries. However, the process of reducing dependency has led to rising inflation, labor shortages, more regional protectionism, and fluctuating shocks in the global financial world. Under such an unpredictable scenario in global trade it would be surprising if countries such as Vietnam will participate in a monetary system that would be chosen for a global trade chain. New global trends It was not until the 19th century that global integration began to develop. However, this trend of globalization eventually waned and collapsed during World War I, and was followed by postwar protectionism, the Great Depression, and finally the long and brutal World War II. When World War II ended in the mid-1940s, the United States led the efforts to restore international trade and investment under several set ground … [Read more...] about Vietnam has choices under new global trends

Spokesperson for the Ministry of Foreign Affairs Lê Thị Thu Hằng at Thursday's press briefing in Hà Nội. — VNA/VNS Photo Phạm Kiên HÀ NỘI — Whether any country, including Việt Nam, will officially accede to the Indo-Pacific Economic Framework for Prosperity (IPEF) unveiled by US President Joe Biden earlier this week, depends on the outcomes of the discussions, foreign ministry spokesperson Lê Thị Thu Hằng said on Thursday. On May 23, the US White House announced the launch of the much-awaited economic initiative, with the claimed dozen of initial partners – Australia, Brunei, India, Indonesia, Japan, Republic of Korea, Malaysia, New Zealand, the Philippines, Singapore, Thailand, and Việt Nam – which together cover 40 per cent of the global GDP. Vietnamese Prime Minister Phạm Minh Chính attended the kickstarting ceremony for the discussions for the framework, Hằng noted, in response to queries on clarification of the first group of participating countries during the press … [Read more...] about Discussion outcomes will determine Việt Nam’s accession to Indo-Pacific economic initiative: foreign ministry

Hanoi (VNA) – The Ministry of Trade and Industry (MTI) of Singapore on May 25 predicted that the country's GDP growth this year may reach only 3-4 percent, lower than the previous forecast of 3-5 percent for this year. In a statement released the same day, the ministry said that Singapore maintained its 3-5 percent economic growth forecast for 2022, but warned that growth will likely come in at the lower half of the forecast range because of the impact of the war in Ukraine and China's strict COVID-19 lockdowns . The conflict has disrupted the global supply of energy, food and other commodities, which has in turn exacerbated global inflationary pressures and adversely affected the growth of many economies, said the statement released with the first-quarter 2022 Economic Survey of Singapore . The ministry said that as a result of the war and lockdowns, global supply disruptions are likely to be more severe and prolonged than earlier expected, potentially persisting … [Read more...] about Singapore’s GDP may expand only 3-4 percent this year