Vietnam and other emerging markets in Asia are not yet major net winners bongdaso mobile production relocation from China, whose role in global trade will not diminish drastically as global supply chains continue to evolve, an S&P Global report says.
China's consistency bongdaso mobile global supply chain
bongdaso mobile a recent commentary, S&P Global noted geopolitical friction, trade barriers, and industrial policy are challenging Asia's dominant supply chains, especially businesses' operations bongdaso mobile China.
Before the trend, firms in the textile and footwear sectors relocated their production lines away from China due to higher costs and wages. The trend has intensified and broadened the relocation to other industries, including semiconductors and smartphones. In addition to moving out bongdaso mobile China, multinationals are now more likely to install new capacity elsewhere.
However, trends in exports and foreign direct investment (FDI) show that, overall, the role bongdaso mobile Asian economies, including China, in the global supply chains is changing only modestly.
S&P Global pointed out that China's share bongdaso mobile U.S. goods imports has shrunk since the Trump administration increased tariffs on most imports from China, with other Asian emerging markets and Mexico filling most bongdaso mobile the gap. Similar developments were noted in Japan and Europe.
Meanwhile, China's exporters have expanded their share bongdaso mobile the imports in emerging markets. This matters as emerging markets' imports make up a large and rising proportion bongdaso mobile the global total. S&P Global attributed the changes to China's growth in exporting "normal" goods, which outpaced the growth bongdaso mobile exporting components assembled in China for re-export to third countries.
China's export market share rose to 39.8% bongdaso mobile the year to mid-2024, from 36% six years earlier, S&P Global highlighted.
Asia's emerging markets grow modestly at changes bongdaso mobile China
As data show, the supposed change is far less than the common understanding, and China's share has improved bongdaso mobile the global export market, S&P Global pointed out that Asian emerging markets and Mexico have only made modest gains.
In particular, for Vietnam, the country's share bongdaso mobile total Asian + Mexico exports expanded impressively in the 15 years through early 2020. Its rise was subsequently disrupted for several years amid the Covid-19 pandemic. While recent trends suggest the growth may have resumed, Vietnam doesn't seem to have been as much bongdaso mobile a winner in the recent global supply-chain shifts as is sometimes assumed, according to S&P Global.
Regarding FDI into Asia and Mexico, the plunge in China since 2022 suggests some emerging markets would benefit from the trend. In fact, S&P Global data shows that only Vietnam and Indonesia reap benefits with higher shares bongdaso mobile the total FDI in Asia and Mexico than six years ago. Vietnam is the only "manufacturing" economy that has a significant increase bongdaso mobile 1.7 percentage points in progress, according to S&P Global.
For absolute figures, FDI into Asian emerging markets excluding China was billion lower bongdaso mobile the year to March 2024 than six years earlier. The total for Asia-Pacific excluding China rose. But that was more than driven by Australia, Hong Kong, and Singapore, S&P Global stressed.
Source: https://theinvestor.vn/vietnam-not-yet-a-net-winner-bongdaso mobile-production-relocation-from-china-sp-global-d12022.html
At the inaugural Global Air Cargo Summit, held bongdaso mobile Antalya, Türkiye, the International Civil Aviation Organization (ICAO) forecasted that air freight volumes will grow by an...
The imposition bongdaso mobile new U.S. tariffs on foreign-made vehicles and components is causing significant disruptions in the global automotive supply chain. Airfreight, often a linchpin...
Global trade uncertainty is prompting air cargo shippers and freight forwarders to favor short-term contracts over longer-term agreements, as highlighted bongdaso mobile a recent Xeneta...
U.S. plans to end tariff-free access for low-value shipments from China and Hong Kong, coupled with a new 145% tariff rate on Chinese imports, are projected to slash over...
Trade groups warn bongdaso mobile higher ocean shipping costs and disrupted supply chains, while U.S. officials argue the policy aims to strengthen domestic shipbuilding and enhance economic...
Since January, the Trump Administration has announced and delayed multiple tariffs on imports from Canada and Mexico, further destabilizing the cross-border freight market....
As global supply chains adjust to post-pandemic realities and shifting trade dynamics, the air cargo industry bongdaso mobile the Asia-Pacific (APAC) region finds itself at a pivotal crossroads.
Global tonnage improved +3% in week 15 (April 7-13) after the previous week’s drop bongdaso mobile -7% as markets that had closed for the Eid-al-Fitr holiday came back on stream, but comparison...
E-commerce continues to be a key growth driver for air cargo, fueled by rising consumer demand and the rapid expansion bongdaso mobile emerging markets, even as regulatory barriers increase.
The International Air Transport Association (IATA) has maintained a positive outlook for air cargo, emphasizing that the majority bongdaso mobile global trade remains unaffected by the...
en