FDI MOVEMENTS
1. Vietnam saw manufacturing inflows jump 18 percent in the first nine months of 2018, driven by investments including a $1.2 billion polypropylene production project by South Korea’s Hyosung Corp., according to a Maybank Kim Eng Research Pte. note on Monday.
2. In January through July, Thailand’s net FDI rose 53 percent from a year earlier to $7.6 billion, with manufacturing inflows surging almost five times, according to central bank data. In the Philippines, net FDI into manufacturing surged to $861 million in the same period from $144 million a year earlier.
REPORTED MOVEMENTS
COMPANY
|
SECTOR
|
NOTE
|
Harley Davidson Inc.
|
Motorcycles
|
Shifted part of its processes to
Thailand
|
Panasonic Corp.
|
Electronics
|
Closed its U.S. plant in early 2017 and
switched to consignment production and exports from Malaysia
|
Steven Madden Ltd.
|
Shoes and accessories
|
Announced that it has been shifting
production of handbags to Cambodia from China
|
Kayamatics
|
Internet of Things devices
|
Has two Chinese factories but plans to
set up production lines in Kuala Lumpur and Penang in Malaysia
|
Delta Electronics Inc.
|
Supplies power components to Apple Inc.
|
Offered $2.1 billion in July to purchase
a Thai affiliate to expand production
|
Merry Electronics Co.
|
Makes headphones for firms like Bose
Corp.
|
Intends to move some of its production
to Thailand from southern China
|
1. Vietnamese furniture producer Phu Tai Corp. is among those looking to cash in. The maker of home furnishings for Wal-Mart Stores Inc. outlets in the U.S. is planning for a 30 percent increase in its exports this year and in 2019, according to Deputy General Director Nguyen Sy Hoe. It’ll invest about $10 million to expand two factories at its base in Binh Dinh province and to upgrade production lines in two other factories in Dong Nai further south.
VIEWS
1. The U.S.-China trade war may be attracting more firms to set up in Asean to circumvent the tariffs. Sectors such as consumer products, industrial, technology & telecom hardware, automotive and chemicals have indicated interest in Southeast Asia.
2. Southeast Asia is finding there’s some upside to the trade war, as it becomes an alternative base for firms relocating production away from China to avoid levies. Southeast Asia serves both as a great growth market, a place to offshore thanks to lower costs of production and liberalization of trade, as well as a source of mitigation from geopolitical risks.
(Source: Bloomberg)
