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Vietnam economy gains as Companies flee China in trade war

Discussion in 'China & Far East' started by Viet, Mar 31, 2019.

  1. Viet

    Viet ELITE MEMBER

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    GDP grew 6.79% in first quarter as exports to US surged

    TOMOYA ONISHI, Nikkei staff writerMARCH 31, 2019 03:47 JST

    [​IMG]
    Vietnamese apparel exports to the U.S. have surged amid the superpower's trade war with China. © Reuters

    HANOI -- The U.S. trade war with Beijing continues to boost the Vietnamese economy as companies dodge tariffs by relocating production here from mainland China, fueling a sharp increase in exports to America.

    Vietnam's real gross domestic product climbed 6.79% on the year during the first three months of 2019, the government said Friday. The country enjoyed its second strongest first-quarter growth in the past decade, surpassed only by the 7.45% rate in 2018.

    Though January-March growth slowed from the 7.31% rate in the previous quarter through December, that period capped a full year when the economy grew by 7.08%, the largest annual expansion since the global economic crisis hit in 2008.

    Exports to the U.S., the country's largest trading partner, jumped 26% on the year in the first quarter. Apparel performed particularly well as textile companies move operating sites to Vietnam from China, echoing a trend in other industries. Exports to China dropped by 7% amid the northern neighbor's economic slowdown.

    The Sino-U.S. trade war will lift Vietnam's economic output by about 0.5 percentage point, the largest margin among Asian countries, Mizuho Research Institute predicts.

    "Even if the global economy slows down, relocation from China will continue, and we can expect an offsetting effect to a certain extent," said Hiromasa Matsuura, an economist at the institute.

    But Vietnam's overall exports rose just 4.7% during the first quarter, an outcome that owes almost entirely to Samsung Electronics. Foreign-owned enterprises are responsible for two-thirds of Vietnamese exports, and the South Korean technology group accounts for 40% within that category.

    Samsung runs two smartphone factories in northern Vietnam. But the company reported a 30% drop in operating profit for the October-December quarter, and has issued a surprise warning about earnings for the first quarter of 2019. Samsung's financial woes have hurt Vietnam's GDP, and exports of cellphones and electronic components dipped 4.3% from a year earlier.

    Underpinning the economy is consumer spending, which accounts for nearly 70% of the GDP. Final consumption expenditures, which include private consumption, gained by 7% in the first quarter.

    Vietnam boasts the third-largest population in the 10-member Association of Southeast Asian Nations, along with an expansion of its upper- and middle-income earners. Vingroup, the nation's largest conglomerate, is opening convenience stores at a rate of 1,000 outlets yearly. That growth, along with the addition of new supermarkets, is helping boost private consumption.

    The manufacturing industry grew 12.3%, thanks largely to the sector diversifying beyond Samsung. Vingroup put the nation's first electric motorcycles on the market in November, and the group will enter the automaking business in June. Vietnam's second-ever oil refinery, the Nghi Son Refinery, began commercial operations in December.


    https://asia.nikkei.com/Economy/Tra...my-gains-as-companies-flee-China-in-trade-war
     
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  2. Viet

    Viet ELITE MEMBER

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    Samsung is weakening that’s not good, but maybe good for domestic phone makers. Vietnam needs more higher growth, at current pace we will reach Japan gdp in 100 years. Why is Japan so rich?

    @Suika
     
  3. Viva_Viet

    Viva_Viet SENIOR MEMBER

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    Korean, Jap r stupid races, Cnese products will replaces their products soon.

    Even when CN in chaos ( in 2023) Cnese rebels surely still can make better products than Jap,Korea.

    Time for VN to think abt the new way to develope thr nations instead of relying on Jap,SK factories in VN
     
  4. Viet

    Viet ELITE MEMBER

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    chinese rebels will make better cars than Toyota? :D
     
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  5. Viva_Viet

    Viva_Viet SENIOR MEMBER

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    Sure if it abt electric cars, Cnese is making better cars battery than SK, Jap now..and the future cars r electric cars,bro.
     
  6. Kai Liu

    Kai Liu FULL MEMBER

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  7. Viet

    Viet ELITE MEMBER

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  8. Kai Liu

    Kai Liu FULL MEMBER

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  9. Viva_Viet

    Viva_Viet SENIOR MEMBER

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  10. Viet

    Viet ELITE MEMBER

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    Vietnam shall send more students to china?

    But I wonder if any chinese university will accept Vietnamese students in science and technology. They mostly give free places to friends as Pakistan and Cambodia.
     
  11. Viva_Viet

    Viva_Viet SENIOR MEMBER

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    No idea, if Cnese dont wanna let us learn, then we can learn from German,SK, JP. Thats not too important.
     
  12. ZeEa5KPul

    ZeEa5KPul FULL MEMBER

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    How come you're growing so slowly? When China was in this stage of development, it regularly grew at greater than 10%. Why aren't you performing?
    Yes. China has already largely overtaken Japan's mediocre automobile industry; it's all about overtaking Germany now. Even in ICE - China won't leave anything to anybody. #1 in all things.
     
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  13. Viva_Viet

    Viva_Viet SENIOR MEMBER

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    Cos we dont live in a barren lands and desert like CN. Our ppl have enough food, not 1 billion starving peasants like CN in 1979, so we cant force our ppl to work like slaves like CN in 1979.

    Your fast growing mainly tks to US mercy. When US showing no mercy ( destroy Huawei, slap tariff on CN goods, support terrorist/ rebels in CN, HK, TW, Tibet etc ) then CN is facing wt collapse now.

    But not in fighting, CN army is very stupid since ancient time, thats why Cnese have to live in barren lands and desert cos they cant expand to the better places due to the army is too stupid and weak( for ex: CN only control 10-12 % SCS ( east VN sea) even its very important to CN cos 70% CN merchant ships must pass through while VN control 60-65 %, and SCS ( east VN sea) is not so important to VN)

    Xi is kneeing down to Trump, but Trump know that CN army is usless, so he keeps bullying and destroying CN in trade war and keep supporting Cnese rebels in TW, Tibet,HK etc
     
    Last edited: Apr 1, 2019
  14. ZeEa5KPul

    ZeEa5KPul FULL MEMBER

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    Your attempt at trolling is so pitiful and boring that the only reaction you elicit from me is :lazy2:
     
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  15. Viva_Viet

    Viva_Viet SENIOR MEMBER

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    Yeah, boring to u, but to the others, they realize how useless CN army is, how coward CN govt. is.

    Thats why CN defence forum is dead. CN is not Tronk like what Cnese bragging here No one wanna talk wt the liars .:cool: