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Global Machinery Production Revenue To Reach US$1.6 Trillion In 2022

Global Machinery Production Revenue To Reach US$1.6 Trillion In 2022

  • 2019 will be a tough year for machine builders, with overall global machine production revenue growing at a compound annual growth rate (CAGR) of 2.1 percent from 2017 and reaching US$1.6 trillion in 2022.
  • Year-over-year eurozone machine production revenues are expected to contract slightly by 0.4 percent in 2019. The Asia-Pacific region will grow by low single digits, as growth in China—the largest contributor in the machine tools market—is expected to remain in the single digits, at least until 2020.
  • The machine tools category comprised 5.7 percent of all global machinery production revenue in 2019. After the global economic downturn in 2015, a short 5.5 percent year-over-year growth spurt in 2017 helped revenues climb to their highest level. However, the year-over-year growth rate fell to 3.4 percent in 2018. It is expected to decline by 0.4 percent in 2019.
  • The largest downstream industries in the machine tool sector are automotive, with 25 percent of revenues, and consumer electronics, with 16 percent.

The market performance of the machine tool sector is highly dependent on commodity prices, macroeconomic conditions and sector performance (e.g., automotive, construction, aerospace, and ship building). According to IHS Markit Economy and Country Risk (ECR) information, a global recession is highly unlikely to occur in 2019. However, due to weaker global trade, political uncertainties, and other headwinds, global machine tools production revenue will only begin to improve late in 2020 or early in 2021.

Automotive And Consumer Electronics Lead The Market

The poor sales of automobiles in late 2018, and the downward-trending market for smartphones and PCs, is reflected in the latest sales and production revenue estimates from IHS Markit. Other broad, underlying factors for the downturn include a weaker global trade environment, increased geopolitical tensions, lower investor confidence and declining global vehicle sales. Furthermore, the top producing and consuming countries for this type of machinery—namely, Germany and China—have been hit especially hard by the industry downturn.

Bleak Near-Term Signs For Machine Tools Production In Germany And China 

In the fourth quarter of 2018, Germany’s manufacturing purchasing managers index (PMI) slipped to a 31-month low. The country’s total machinery production revenue is forecast to contract by 0.3 percent in 2019, with machine tools revenue growing at just 0.7 percent, year over year. Germany’s poor performance was caused by the global decline in automotive manufacturing. While it is difficult to isolate the main reason for the declining growth in this industry, changes in the way new vehicles are regulated is an obvious candidate.

The tedious and long approval time for regulatory compliance has proven costly to automakers. Especially in Europe, consumers are also more conscious about making new vehicle purchases, in the face of these ever-changing regulations. Although the automobile manufacturing industry has made strides in implementing new technologies, market conditions will continue to push near-term machinery investment rate to an all-time low.

Machinery production in China is also facing tremendous downward pressure, due to slowing investment, sluggish growth in downstream industries and the Sino-US trade war. China is also dealing with many of the same problems Germany is facing, including contracting automotive sales and weaker global trade.

Although national stimulus policies have been enacted, and industrial upgrades have been implemented gradually, they have not done enough to offset the economic headwinds in China. In fact, IHS Markit forecasts that China’s machinery production revenue will grow only 1.4 percent in 2019, the lowest rate since 2015. Machine tools production revenue will also suffer, contracting by 3.7 percent in 2019.

Timing Is key For AGVs, AI And Other Game-Changing Innovations

Good timing is often the key to a successful product launch. Despite the current declining economic conditions, the application of automated guided vehicles (AGVs) and AI in machine tools is expected to increase in the next few years. Some companies are more keen than others to strengthen their competitive edge during hard times.

Machine tool companies have started to include AGVs in their work flows, to load and unload materials. Normally this process would be handled by a few skilled workers, but this type of work can now be completed by a single AGV with a robotic arm.

Robotic modules with robotic arms are also used to help cutting machines load, unload and move products and manufacturing components. Hybrid solutions are now appearing, that enable machines to form and cut at the same time. This ability is particularly important for production lines that need to save space, by minimising the machine footprint.

With efficiency and precision in mind, proprietary AI systems can be used to constantly tune and optimise cutting machines in real time and without human intervention. These systems are smart enough to regulate cooling and power, which results in cost savings from less waste material, longer service intervals and reduced power usage. On top of all of that, cutting tools can be continuously tuned and adjusted to provide an optimal cut.

By Teik Chuan Goh, analyst, manufacturing technology, IHS Markit

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Contraction Of Singapore’s Manufacturing Sector For Fourth Consecutive Month

Contraction Of Singapore’s Manufacturing Sector For Fourth Consecutive Month

Singapore’s manufacturing sector has contracted again in December 2018, with the key electronics sector declining further. This is aligned to a weakening global outlook for the manufacturing sector and the current fallout between the US and China, as well as the overall decline in manufacturing in South Korea, Taiwan and Malaysia.

In fact, Singapore’s overall Purchasing Managers’ Index (PMI), dipped 0.4 points in December 2018, reaching 51.1. This is barely above a reading of 50 which indicates that growth has occurred. Similarly, the electronics sector, which saw its first contraction after 27 consecutive months of growth in November 2018, dropped 0.1 points to 49.8 in December 2018 according to the Singapore Institute of Purchasing and Materials Management (SIPMM).

Meanwhile, China’s official manufacturing PMI that was released on January 2019 indicated that the country’s manufacturing sector has sank into the contraction territory for the first time since July 2016, while the Caixin manufacturing PMI also contracted to 49.7, which is the lowest figure that the index has dropped to since May 2017. This was a decrement that stands below analyst expectations.

Regarding this, the SIPMM has commented that the lower overall PMI reading can be attributed to slower growth in new orders and new exports, factory output, inventory, as well as employment level. Additionally, it can be taken into account that the indexes of finished goods, imports, input prices and supplier deliveries also expanded at a lower rate, while the order backlog index has continued to contract for three consecutive months. Alvin Liew, a Senior Economist at UOB has further added that the weaker PMI is most probably linked to a slowdown of China’s growth and the corresponding drop in demand for Singapore’s goods and services that are tied to China’s economy. He also projected that a continued slowdown is likely to occur due to many factors such as a decrease in China’s growth, uncertain trade developments between the US and China, as well as a global electronics cycle downturn.

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Global Laser Cutting Market To Hit US$5.7 Billion By 2022

Global Laser Cutting Market To Hit US$5.7 Billion By 2022

The global laser cutting market has a projected CAGR of 9.3 percent from 2016 to 2023 and will grow to reach US$5.7 billion by 2022. This can be attributed to heightened production demands from various industries and the shift towards automation. With regards to the automotive, consumer electronics and defense industries, their growth has resulted in an increased demand for machines that drive manufacturing processes and these has in turn spurred the growth of the laser cutting industry.

Currently, alternatives to laser cutting such as offer similar features and are able to offer some benefits that laser cutting cannot provide. However, the market competition posed by these alternatives are expected to dwindle with time due to the constant technological improvements that laser technologies are experiencing.

Based on technology, the laser cutting market can be segmented into solid state lasers, gas lasers and semiconductor lasers. Solid state laser was the highest revenue contributor and comprised about 40 percent of the total market share in 2015. However, gas laser is expected to witness rapid growth till 2023.

Although the US contributes significantly to the growth of the industry, Asia-Pacific is expected to be the fastest growing region moving forward. This can be attributed to an increase in the number of manufacturing facilities and the growing purchasing power of consumers in developing nations.

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Vietnam And South Korea To Increase Bilateral Trade To US$100 Billion By 2020

Vietnam And South Korea To Increase Bilateral Trade To US$100 Billion By 2020

Vietnam’s Minister of Industry and Trade, Tran Tuan Anh, has signed a memorandum of understanding (MoU) with South Korea’s Minister of Trade, Industry and Energy, Sung Yunmo. Under this MoU, both countries will embark on an action plan to increase bilateral trade to US$100 billion by 2020. Additionally, this document will function as an added legal documentation between both leaders with regards to the broad agreements that were discussed at the Asia-Pacific Economic Cooperation (APEC) meetings in Da Nang in November 2017.

Based on the MoU, from now on till 2020, South Korea would support Vietnamese enterprises by enhancing their competitiveness in areas that include accessories and parts, automobile and electronics.

Bilateral trade between Vietnam and South Korea reached US$61.5 billion in 2017 which is an increment of 41.3 percent year-on-year. Within this figure, Vietnam’s exports to South Korea made up US$14.8 billion, which was an increment of 30 percent while the country’s imports to South Korea was worth US$46.7 billion. This was an increment of 45.3 percent year-on-year.

In the January – November period, South Korea remained Vietnam’s second largest import market with turnover of US$43.5 billion. This was an increment of 1.7 percent year-on-year and South Korea was only behind China by US$ 59.7 billion.

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Monthly Manufacturing Performance In Singapore – October 2018

Monthly Manufacturing Performance In Singapore – October 2018

Total Manufacturing Performance

Singapore’s manufacturing output increased 4.3 percent  in October 2018 on a year-on-year basis. Excluding biomedical manufacturing, output grew 3.0 percent. On a three-month moving average basis, manufacturing output rose 2.5 percent in October 2018, compared to a year ago. On a seasonally adjusted month-on-month basis, manufacturing output increased 2.0 percent. Excluding biomedical manufacturing, output grew 3.9 percent.

Performance By Cluster

Transport engineering: Output increased 30.8 percent year-on-year in October 2018 with all segments recording output growth. The marine & offshore engineering segment expanded 52.2 percent, on the back of a low base in October last year, as well as a higher level of work done in offshore projects. The aerospace segment grew 15.6 percent with more engine repair and maintenance work from commercial airlines. Overall, the transport engineering cluster grew 14.0 percent in the first ten months of 2018 compared to the same period last year.

Biomedical manufacturing: Output increased 11.5 percent in October 2018 compared to a year ago. Pharmaceuticals output expanded 15.8 percent with higher production of pharmaceutical and biological products, while the medical technology segment grew 2.9 percent to meet export demand from the US. On a year-to-date basis, the biomedical manufacturing cluster’s output increased 5.8 percent compared to the same period a year ago.

Precision Engineering: Output grew 1.4 percent in October 2018 compared to a year ago. The precision modules & components segment grew 7.7 percent, supported by higher production in optical instruments. By contrast, the machinery & systems segment fell 2.9 percent due to lower production of industrial process control and semiconductor equipment. On a year-to-date basis, output of the precision engineering cluster grew 7.0 percent compared to the same period last year.

General manufacturing: Output increased 1.3percent on a year-on-year basis in October 2018. The miscellaneous industries segment grew 2.9 percent, on account of higher production in structural metal products and batteries. The food, beverages & tobacco segment rose 2.1 percent with higher output in infant milk and dairy products. However, the cluster’s growth was moderated by the printing segment which declined 6.9 percent. Cumulatively, the cluster’s output rose 0.6 percent from January to October 2018 compared to the same period a year ago.

Chemicals: Output decreased 1.0 percent year-on-year in October 2018. The other chemicals segment grew 15.1 percent with higher output in fragrances. However, production in the petroleum and petrochemicals segments fell 9.6 percent and 14.7 percent respectively due to maintenance shutdowns. In the first ten months of this year, output of the chemicals cluster increased 5.6 percent compared to the same period in 2017.

Electronics: Output fell 2.7 percent in October 2018 on a year-on-year basis. Within the cluster, the other electronic modules & components and infocomms & consumer electronics segments grew 5.1 percent and 1.7 percent respectively, while the rest of the electronics segments contracted. Cumulatively, the electronics cluster’s output increased 8.9 percent from January to October this year, compared to the same period last year.

The next monthly manufacturing performance release will be issued on 26 December 2018 on the Singapore Economic Development Board (EDB) webpage.

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Two New Consortia To Be Set Up Under Energy Grid 2.0 Programme In Singapore

Two New Consortia To Be Set Up Under Energy Grid 2.0 Programme In Singapore

The National Research Foundation Singapore (NRF) and the Energy Market Authority (EMA) are setting up two new consortia to drive R&D and push for the adoption of novel technologies in the energy sector. The Smart Grid and Power Electronics Consortium Singapore (SPECS) and the Cooling Energy Science and Technology Singapore (CoolestSG) Consortium will bring together research institutes, companies and government agencies to come up with solutions in smart grid and cooling technologies. NRF and EMA will set aside up to S$9 million over three years for both consortia.

Singapore has invested steadily in research in smart grid technologies in the past decade. These investments have grown a strong base of researchers with expertise in the smart grid and power electronics domain. SPECS will provide a platform for companies to access the latest technologies developed by these researchers, and to translate them into commercially-viable products and services.

At the same time, as a tropical country, Singapore needs to develop and deploy efficient cooling technology to improve our liveability in a way that minimises carbon emissions. CoolestSG aims to achieve this by enabling companies and researchers to share facilities to testbed new cooling technologies for deployment.

NRF CEO Professor Low Teck Seng said: “Against the backdrop of the rapidly evolving energy landscape, researchers and companies need to continually rethink the way that energy is stored, managed, and distributed in Singapore. This includes incorporating advanced digital technologies such as artificial intelligence and cybersecurity measures to support a smart, secure and resilient energy infrastructure. The two latest technology consortia will deepen our research capabilities in grid management and cooling technologies, and provide companies a leg-up in commercialising these capabilities.”

EMA CE Mr Ngiam Shih Chun said: “Our energy grid is evolving, with more bidirectional flows and connections to the distribution grid. The establishment of the consortia will provide a platform for our companies to collaborate with institutes of higher learning and research institutes. Developing solutions, such as Solid State Transformers that effectively interface DC loads such as solar and wind with conventional AC sources and loads, and building deep technical expertise to reduce cooling demand that makes up 25% of our electricity consumption are key areas that will contribute towards a future grid system that is more efficient, sustainable and resilient.”

The Smart Grid and Power Electronics Consortium (SPECS) is set up to keep pace with the fast-evolving energy landscape. It will enable companies to work with publicly-funded researchers to translate intellectual property around Energy Grid 2.0 technologies into solutions for deployment and commercialisation. The consortium will focus on areas in advanced power electronics such as solid state transformers, energy management systems such as load and generation balancing, and cybersecurity. Technologies in these areas will help to achieve energy savings, and support a smarter grid system that is secure and resilient.

SPECS is a national consortium that will be hosted at Nanyang Technological University, Singapore (NTU Singapore). The management board will be co-chaired by the Energy Research Institute @ NTU ([email protected]) and EMA to facilitate the eventual deployment of smart grid and power electronics technologies developed in the Energy Grid 2.0 programme. 17 companies have joined the consortium, including AMETEK Programmable Power Inc, EPI Technology Venture Pte Ltd, IESVE Singapore Pte Ltd, Interwell Pte Ltd, Lite Unite Pte Ltd, Sembcorp Industries Ltd and TransferFi Pte Ltd. See Annex A for the list of companies.

Professor Lam Khin Yong, NTU’s Vice President for Research, said: “The SPECS consortium will enable companies to tap the advanced research on energy grid and related technologies in Singapore to develop innovations and services for deployment and commercialisation. It is an integral part of the value chain pathway in the energy ecosystem, which blends industrial experience with translational research excellence such as NTU’s strengths in sustainability, artificial intelligence, and clean energy solutions.”

Matthew Friedman, Chief Digital Officer of integrated energy company, Sembcorp Industries, said: “We are pleased to be part of this consortium that will support the translation of innovative solutions from laboratory to market and the commercialisation of new technologies. We hope such partnerships will bring great benefits to the energy industry and contribute to its long-term growth.”

Cooling Energy Science and Technology Singapore (CoolestSG)

Cooling Energy Science and Technology Singapore (CoolestSG) will develop and accelerate the deployment and commercialisation of cooling technologies, which can be applied to buildings, data centres and industry. Technologies include both active and passive cooling, and cooling by integrated design.

Under CoolestSG, industry partners and research performers will interact and work together to identify relevant topics. They will develop novel solutions that meet the needs of the industry. Companies that join the consortium will get to test their technologies at the facilities of research institutes and government agencies here, such as the Building and Construction Authority’s (BCA) SkyLab.

Through interactions with government agencies, companies can gain insights into Singapore’s future cooling needs and focus areas. These include policy and industry roadmaps, and programmes that are available to fund the development of the required cooling technologies. The consortium will also be working alongside government agencies to achieve national sustainability goals for energy efficient cooling, including BCA’s Super Low Energy Buildings Technology Roadmap, and the Infocomm Media Development Authority’s (IMDA) Green Data Centre Technology Roadmap.

CoolestSG is a national consortium that will be hosted at the National University of Singapore (NUS). Its management board will be co-chaired by senior management from NUS and BCA. A technical committee comprising representatives from NUS, industry and government agencies will provide technical guidance for the consortium and actively engage industry partners to build strong networks and identify pipeline projects. 30 companies including Ascendas-Singbridge Group, CapitaLand Limited, ENGIE Services Asia Pacific, Mitsubishi Electric Asia Pte Ltd, Natflow Pte Ltd, and Shinhan Tech-Engineering Pte Ltd, will be joining the consortium. See Annex B for the list of companies.

Professor Philip Liu Li-Fan, NUS Vice President (Research and Technology) and Co-Chair, CoolestSG Management Board, said: “CoolestSG aims to accelerate the creation of innovative cooling solutions and translating these technological advancements from the lab into real-world applications. Through this unique public-private partnership, academic institutions, government agencies and the industry will team up, pool resources as well as share knowledge and capabilities to co-create cooling technologies that are energy efficient and commercially viable. These industry projects will also serve as training opportunities to build a strong talent pipeline to meet Singapore’s future energy needs.”

Er. Tay Cher Seng, Managing Director, Natflow Pte Ltd, said: “Participating in the CoolestSG consortium will allow Natflow to learn about the latest cooling technology developed by research institutes. We can also work with researchers to provide better energy-saving solutions for our customers.”

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Tornos Launches Customer Service Centre In Shanghai

Tornos Launches Customer Service Centre In Shanghai

Tornos Shanghai has officially opened its new customer centre in Shanghai’s Pudong Pilot Free-Trade Zone. This is in recognition of China’s status as the largest industrial market globally. The new centre will accommodate the company’s full range of machines and brings Swiss operational excellence to the doorsteps of customers in Greater China.

The inauguration of the new customer centre in Shanghai also underscores the power of three legendary entities—Tornos, Switzerland and Shanghai—Turning Together toward the future. Present for many years in China, Tornos inaugurated its first subsidiary in Shanghai in 2004. For both Tornos and Shanghai, the past 14 years have been an amazing journey and the Tornos’ customer centre in Shanghai will strengthen the company’s regional presence and fortify its standing as the partner of choice in machine tools.

Tornos, China And Switzerland: A History Of Collaboration

This year, Tornos also celebrates the fifth anniversary of its Tornos Xi’an plant. And with internationalisation as a top priority, Tornos is strengthening its flexibility and growing through innovation to enhance its operational excellence every day. With the opening of its customer centre in Shanghai, Tornos ramps up its offering of unique solutions for targeted market segments – an approach that has met success in Greater China.

And there is more to come: Tornos plans on increasing its visibility in this market region, and the customer centre in Shanghai will play a big part in this strategy. In fact, this centre is a clear sign of Tornos’ commitment to this market and to its customers.

The new centre is equipped with the latest technologies and will provide quality support to Chinese customers. With a surface area of more than 1,500 square meters, it includes a training center, showroom, metrology room and a stock of spare parts.

In terms of applications, the centre will make full use of Tornos’ know-how across a wide range of industrial segments—including automotive, micromechanics, electronics and medical & dental—with the goal providing turnkey machining solutions while being close to the market. The purpose of this technology center is to maximise support for Tornos’ customers in the production of parts in small or large quantities in China. This support ranges machine support and operator training to the supply of spare parts, technical assistance and programming advice, as well as expertise on the best choice of tools and clamping devices.

Close To Customers, Wherever They Are In The World

Thanks to its new center in Shanghai, Tornos will be faster, more efficient, more responsive to its local customers as this enables the company’s technicians to expedite machine set ups and partnerships with customers. An open house for the customer centre in Shanghai will occur on November 8.

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ST Engineering Marks First Entry Into Indonesian Metro Market

ST Engineering Marks First Entry Into Indonesian Metro Market

SINGAPORE: ST Engineering’s electronics sector has announced that it has secured a contract to provide its Platform Screen Doors (PSD) solutions for Jakarta’s new light rail transit (LRT), the Jabodebek LRT System. Awarded by PT Len Railway System, a subsidiary of PT Len Industri which is a state-owned enterprise under the Ministry of State-Owned Enterprise of Republic Indonesia, this marks the sector’s first foray into the Indonesian metro market.

ST Engineering’s PSD solution will serve as a safety barrier between the platform and the train track, enhancing the safety of passengers when the Jabodebek LRT System is fully operational in 2019. The new LRT system which consists of 18 stations connecting Jakarta’s city centre to suburbs areas in Bogor, Bekasi and Depok, is expected to face high human traffic during peak hours as it is seen as the answer to Jakarta’s high road traffic congestion situation.

Mr Ravinder Singh, President of Electronics, ST Engineering said, “This contract win reinforces our position as an industry leader in smart rail transportation, strengthening our record of more than 100 rail electronics projects in 41 cities around the world. We will work together with our partners to deliver safe, reliable and efficient train services for Jakarta commuters.”

Reinforcing the mutual commitment to bring the shared vision of an enhanced rail transportation in Indonesia to fruition, the company’s electronics sector has also signed a Memorandum of Understanding (MoU) with PT Len and PT Eltran, which is a subsidiary of PT Len, to collaborate on future PSD projects in Indonesia and overseas. The partnership brings together ST Engineering’s rail electronics capabilities, as well as PT Len and PT Eltran’s expertise and experience in the fields of mechanical, electrical and telecommunications systems, to co-develop rail solutions catered to the needs of the larger Indonesian market and other global cities.

The delivery of PSDs for the first two stations will begin in March 2019, with progressive delivery of the remaining 16 stations by March 2020.

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European Union-Singapore Free Trade Agreement Spurs Vietnamese Economic Growth

European Union-Singapore Free Trade Agreement Spurs Vietnamese Economic Growth

BRUSSELS, BELGIUM: HSBC Vietnam has reported that the recently established European Union-Singapore Free Trade Agreement (EUSFTA) is the first free trade agreement (FTA) that was conducted between the EU and an ASEAN country and it signifies a significant moment for the economies of Singapore and the EU as well as Vietnam, which is currently in negotiations with Europe on a similar FTA.

The EUSFTA, which would remove all tariffs and decrease non-tariff barriers between Singapore and Europe, will allow for manufactured goods to have ASEAN cumulation. This means that selected inputs, especially those from Vietnam, that are sourced by Singaporean businesses from ASEAN member states will also come under Singapore’s zero tariff regime with Europe.

Winfield Wong, Head of Wholesale Banking at HSBC Vietnam has commented that with the EUSFTA in place, Singapore and the ASEAN region including Vietnam will be impacted in areas like electronics and pharmaceuticals. Additionally, a large proportion of Singapore products have components that are produced in other ASEAN countries, with ASEAN ranking in as the largest exporter to Singapore – just in 2017 alone, Singapore had imported US$71.06 billion worth of goods from ASEAN. In particular, common Vietnamese exports to Singapore includes computers, electronic products, machinery and equipment and parts.

Currently, Singapore is the third largest trade partner to Vietnam in ASEAN and the country’s tenth biggest trade partner globally. Singapore is also Vietnam’s third largest foreign investor and the country’s highest spending ASEAN investor, with a total investment value of US$43 billion invested in over 2,000 Vietnamese projects in areas such as manufacturing, energy, logistics and services.

Moving forward, the EUSFTA will serve as a template for future EU-ASEAN FTAs especially as the EU continues negotiations towards an FTA with Vietnam, Indonesia, Thailand and Malaysia. As of July 2018, the EU and Vietnam have already agreed on the final text for the EU-Vietnam Free Trade Agreement and the EU-Vietnam Investment Protection Agreement. This adds on to Vietnam’s current status as the EU’s second biggest trading partner in  ASEAN after Singapore. Similarly, as ASEAN grows in its role as the supply chain hub for European companies, the region is expected to benefit from the FTAs that have been established.

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Vietnam’s Electronics Industry To Benefit From Us-China Trade War

Vietnam’s Electronics Industry To Benefit From Us-China Trade War

VIETNAM: Hanoi-based Bao Viet Securities Corp (BVSC) has reported that the Trump administration’s expansion of trade war to Chinese electronics will drastically impact key domestic exports such as mobile phones, smart devices and telecommunications equipment which carry an estimated value of US$256 billion. This equates to 50% of China’s total export turnover to the US.

Furthermore, due to increasing tariffs and labour costs brought upon by the trade war on Chinese mobile phones, Samsung is aiming to decrease its production by 40 million units in China and could look towards developing its manufacturing capabilities in other developing countries. Spurring the speculation that capital flows from Samsung’s operations in China may be diverted to Vietnam due to the country’s current status as the largest manufacturer of Samsung products with 240 million units being churned out per year. Although, India (50 million units), South Korea (40 million units) and Indonesia (8 million units) have also been identified as key mobile phone producers for Samsung.

Currently, China still holds key advantages in processing electronic products due to the presence of a developed infrastructure and auxiliary industries. However, the ongoing trade war may result in a loss of capital flows from large MNCS targeting the US market and this could re-divert foreign direct investment towards other Asian countries such as Vietnam. A trend that would result in increases in Vietnamese exports, growth in industrial zones and new job creation.

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