Reported 7 months ago
According to a June 13, 2024, report from Nikkei Asia, ASEAN countries' exports to the US in the first quarter of the year surpassed those to China for the first time in six quarters, indicating a significant shift in trade activities within ASEAN as global supply chains realign. Data from ASEAN and individual governments showed exports to the US at $67.2 billion, exceeding the $57 billion to China. Experts attribute this trend to increased US purchases of semiconductors and electronic components from ASEAN, as well as China's slower economic growth. Malaysia's exports to the US in Q1 grew by 8%, while those to China decreased by 3.3%. This shift has been driven by both structural and cyclical factors, with increasing cost in China and geopolitical tensions pushing more US companies to expand beyond China, benefiting countries like Malaysia and positioning it as an attractive alternative for production. Vietnam, on the other hand, saw a 24% increase in exports to the US in the first quarter, reaching $25.7 billion, surpassing Thailand's $12.6 billion and Singapore's $12 billion. Vietnam's economist Le Dang Doanh noted the complementarity between the US and Vietnam in exports, where Vietnam's competitive pricing in goods like smartphones, electronics, agriculture products, wood furniture, textiles, and apparel has led to a significant export potential to the US. The US-China trade war has further favored Vietnam's exports to the US, with the imposed high tariffs on Chinese goods making Vietnamese products more competitive. Thailand also experienced a 9.8% increase in exports to the US in Q1, while exports to China decreased by 5.1%, mainly due to a sluggish demand for automobiles in China amid deflation risks. This shift highlights the impact of US-China relations on the export dynamics of ASEAN countries.
Source: YAHOO