Posted on 04/30/2022 4:53:58 PM PDT by datura
One of the fastest recovering economies in the pandemic, Vietnam’s export growth is pulling away from Shenzhen for the third year, after surpassing it for the first time in 2020.
According to data released on April 8 by Vietnam’s bureau of statistics, the country’s total export value for the first quarter of 2022 rose to $88.58 billion, up 12.9 percent, indicating Vietnam’s upward trend in exports.
It surpassed China’s strongest city Shenzhen in exports by 30 percent. In the first quarter of 2022, Shenzhen’s exports dropped to 407.66 billion yuan ($61.68 billion), down 2.6 percent year-on-year as shown by Chinese official data.
Shenzhen is one of the richest cities in China with its exports topping all Chinese cities for decades.
In March, Vietnam’s exports reached $34.71 billion, up 48.2 percent from a year earlier, and up by 48 percent compared with Shenzhen, which exported about 120 billion yuan (about $18 billion) in the same period, down 14 percent from a year earlier.
Vietnam exceeding Shenzhen in exports first came in 2020, with Vietnam’s total annual exports valued at $282.65 billion, 3 percentage points higher than Shenzhen’s exports of $272 billion.
In 2021, exports grew even faster in Vietnam, nearly 9 percent beyond Shenzhen, with $336.25 billion in total exports from Vietnam and $307.2 billion in Shenzhen’s total exports that year.
Electronic products take a prominent place in Vietnam’s export surge: In the first quarter of 2022, the highest export value of $14.2 billion was in cell phones and relevant components; electronics, computers, and relevant components is second with exports at $13.1 billion; followed by exports of machinery manufacturing and equipment products valued at $9.9 billion, ranking third.
The rapid growth of Vietnam’s electronics exports caused some anxiety and a sense of crisis among the relevant Chinese industry insiders, Chinese financial media Yicai said on April 26.
Manufacturing enterprises in China have faced an unprecedented plight since the onset of the pandemic and the ruling Communist Party’s zero-COVID policy.
Shenzhen, a leading global technology hub, had experienced a period of lockdown. Foxconn’s Shenzhen plant was completely shut down on March 14, including its Apple iPhone production line in the Shenzhen Industrial Park. The disruption in production and business operation has resulted in a decline in the city’s exports.
South Korea’s Samsung and LG, and U.S.-based Intel have established their production lines in Vietnam for many years. In addition, some electronics manufacturers such as Taiwan-based Pegatron Corp. shifted to Vietnam during the pandemic.
In 2021, Samsung Vietnam had a turnover of $74.2 billion, produced half of the world’s Samsung cell phones, and exported to 128 countries and regions, according to Vietnam Investment Review on Jan. 24.
Samsung is the largest foreign investor in Vietnam. By the end of 2021, Samsung’s investment in Vietnam had reached $18 billion; in February 2022, Samsung increased its total investment to $19.2 billion.
Vietnam also boosted its economic and trade ties with Australia as part of a reshuffling move in the global supply chain.
In April 2020, the Australian federal government called on the World Health Organization to launch an independent international investigation into the origin of COVID-19, which is believed to have started in a laboratory in Wuhan, according to The Guardian on April 29.
In response, China took a series of retaliatory actions by banning beef imports from four Australian beef plants in May 2020, imposing an 80 percent anti-dumping and countervailing tariff on Australian barley, and unofficially forbidding imports of Australian coal in October of the same year,
In 2021, the total two-way trade between Australia and Vietnam exceeded $12.4 billion, an increase of more than 49 percent over 2020; in the same year, the two countries signed a strategic document aimed at strengthening their economic cohesion, including promoting trade and becoming each other’s largest trading partners.
In the first quarter of 2022, Vietnam’s exports to Australia increased by 32.36 percent year-on-year, with coffee up 84 percent, fishery products up 51 percent, and various types of steel up 500 percent. At the same time, Vietnam imported raw materials such as coal, iron ore, metals, and cotton from Australia.
“Vietnam is evolving at a speed that no one can even fathom and quickly surpassing China to becoming the prime destination for manufacturers,” said a 2021 report titled “A Complete Guide Of Moving Manufacturing To Vietnam” published by VICO Shipping Company, which was founded in 1990 and engaged in freight forwarding service in Indochina with Vietnam as its business center.
As for the advantages of Vietnam, the report attributed them to the country’s low labor costs (about half that of China), more free trade, fewer restrictions on foreign direct investment, fewer counterfeiting problems, and lower tariffs.
The Hong Kong-based shipping company also indicated in the report that China’s manufacturing sector was hampered by three major factors, including the ongoing impact of the pandemic and supply chain disruptions, less focus on efficiency and cost, and rising labor costs in China.
China will never finish the Covid plandemic with their zero Covid policy, and the world will be a better place when their economy craters.
‘Craters’ in reference to
China makes me Happy.
Hmmm...
WWII - Korean War - War in Vietnam...
Japan & Germany - South Korea - Vietnam...
Bomb the crap out of them and make them (eventually) technology giants...
When did “salting the earth” go out of style?
Whoops! That didn’t work for the Romans...
In 1975ish, we received a lot of the “boat people” here. Vietnam war refugees who fled and settled at first in Westminster, Ca. They are a credit to legal immigration and assimilation. I hired many of them because they knew how to work well and were glad to be here.
Yes indeed, it was, until 2000, a major factor in this Nation's historical greatness and strength...
Unfortunately, the Bush-Obamy-Xiden axis permanently changed it via:
"...illegal migration and non-assimilation & balkinization. "
I’ve only been into Vietnam one time over the Chinese border, and was quite happy at how well received I was as an American. (It was only a small border crossing, very rural - super nice folks.)
Not fond of their government- but definitely glad to see them starting to displace China! I cannot foresee a day where Vietnam would actively want to rule the world like China does.
They’ve come a long way since “love you G.I. long time” .
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