fung business intelligence - highlights april2014 · 2016-09-06 · even beating the central...

SOUTHEAST ASIA | APRIL 2014 | 1

HIGHLIGHTS

CAMBODIA » P.2

Approved investment triples in 1H13 ILO-Better Factories Cambodia returns to public disclosure of

assessment findings Wage hikes expected in 2014

INDONESIA » P.3

Agreement signed with EU to certify legality of timbers US$28 billion in deals signed with Chinese companies Trade balance improves in August as imports of capital goods

slowed

PHILIPPINES » P.4

Manufacturing output grows by 18.3% yoy in August Daily minimum wage in Metro Manila increases to 466 pesos Philippines set to apply for the EU GSP+ scheme

THAILAND » P.6

Growth forecast trimmed due to sluggish demand Exports contract in September Special Economic Zones along border under consideration

VIETNAM » P.7

National Wage Council proposes minimum wage hike of 15-17%

Exports grow by 17.5% yoy in January-September Five airports to half fees to attract carriers

IN THIS ISSUE

In the newsMajor economic indicatorsDaily exchange ratesAppendix

Fung Business Intelligence Centre10/F LiFung Tower,888 Cheung Sha Wan RoadKowloon, Hong KongT: (852) 2300 2470F: (852) 2635 1598E: [email protected]

CAMBODIA » P.2 Political tensions and labour unrest cast shadow on economic

growth Logistics performance greatly enhanced ILO launches online transparency database

INDONESIA » P.3 Rupiah appreciated by 8.8% since the end of 2013 Electricity tariff to be increased by 38.9-64.7% for industrial

consumer Concerns grow over fiber sourcing from ancient and

endangered forests

THE PHILIPPINES » P.4 Manufacturing output grew by 1.2% yoy in February FDI rose 20% yoy in 2013 Truck ban in Manila prompted backlash from the export sector

THAILAND » P.5 Industrial production shrank for the twelfth month Garment exports expected to grow by 5% this year Political unrest dampens private investment

VIETNAM » P.6 Hong Kong investors flocked into the garment sector Automated customs system to be implemented nationwide in

June Better Work Vietnam expands to northern region

APRIL 2014 HIGHLIGHTS

CAMBODIA » P.2



INDONESIA » P.3


slowed

PHILIPPINES » P.4


THAILAND » P.6


VIETNAM » P.7




HIGHLIGHTS

CAMBODIA » P.2



INDONESIA » P.3


slowed

PHILIPPINES » P.4


THAILAND » P.6


VIETNAM » P.7



IN THIS ISSUE







endangered forests






CAMBODIA » P.2



INDONESIA » P.3


slowed

PHILIPPINES » P.4


THAILAND » P.6


VIETNAM » P.7




HIGHLIGHTS

CAMBODIA » P.2



INDONESIA » P.3


slowed

PHILIPPINES » P.4


THAILAND » P.6


VIETNAM » P.7



IN THIS ISSUE







endangered forests






CAMBODIA » P.2



INDONESIA » P.3


slowed

PHILIPPINES » P.4


THAILAND » P.6


VIETNAM » P.7




POLITICAL TENSIONS AND LABOURUNREST CAST SHADOW ON ECONOMICGROWTH

Cambodia’s economic growth is projected to slowdown slightly to 7.0% yoy in 2014 from 7.2% yoy in2013, according to the latest Asian DevelopmentOutlook published by the Asian Development Bank(ADB). The slowdown is attributable to politicaluncertainties and labour unrest in the country.

Political tensions following the disputed nationalelection in July last year have dented investorconfidence. Inflows of foreign direct investment(FDI) in 2013 amounted to US$1.3 billion,representing a 13.3% decline from US$1.5 billionin the previous year, according to ADB.

Labour strikes for higher wages resulted inproduction suspensions in the garment sector inlate December and early January. The strikes costmanufacturers US$42.2 million in lost productionand millions more in property damage, accordingto Garment Manufacturers Association inCambodia (GMAC). But recent export figuresseem unaffected by the headwinds. Data from theMinistry of Commerce show that exports ofgarments and footwear rose by 6.5% yoy toUS$991 million in January-February.

CAMBODIA.

LOGISTICS PERFORMANCE GREATLYENHANCED

In the Logistics Performance Index (LPI) recentlyreleased by the World Bank, Cambodia managedto improve its ranking among 160 economies from101st in 2012 to 83rd in 2014. The LPI, publishedevery two years since 2007, measuresperformance of trade logistics within a countrybased on a worldwide survey of logistics operators.

The LPI report notes that, with the introduction ofautomated customs procedures in Cambodia and

hard infrastructure recently operational, clearancetime for physical inspection of cargo has droppedfrom 5.9 days in 2010 to 1.4 days in 2014.Moreover, the portion of consignments selected forphysical inspection has reduced significantly from29% in 2010 to 17% in 2014, suggesting enhancedrisk management capabilities of Cambodia’scustoms.

Among the six LPI component indicators,Cambodia achieved the highest ranking in‘customs’ and ‘tracking and tracing’, both at 71st

out of 160 economies, while the lowest ranking fellinto ‘timeliness’ at 129th. The country ranked 78th,79th and 89th, respectively, for the other threeindicators of ‘international shipments’,‘infrastructure’ and ‘logistics quality andcompetence’.

(For a comparison of LPI indicators for selectedAsian countries, please refer to the Appendix)

CAMBODIA.

ILO LAUNCHES ONLINE TRANSPARENCYDATABASE

Better Factories Cambodia (BFC), an initiative ofthe International Labor Organization (ILO), haslaunched the online Transparency Database todisclose how individual garment factories measureup on key working conditions.

The BFC revealed that one third of the 51 factoriesincluded in the ‘critical issues’ database madeimprovements on 21 basic legal requirements. Thetotal number of violations in this group of factoriesfell from 59 to 34 between December last year andFebruary – a 42% improvement. A smaller groupof 15 factories in the database (29%) were alreadyin compliance on all of the 21 basic legalrequirements included in the ‘critical issues’category. Another 15 factories made ‘verifiableimprovements’ during the period in order to moveinto this group, making up a total of 30 factories(59%) with no violations of the ‘critical issues’.






CAMBODIA.








CAMBODIA.









CAMBODIA.








CAMBODIA.





BFC expects to increase the number of factoriesmonitored to more than 300 by next year. Thedatabase shows that both the Cambodiangovernment and the industry recognize theincreasing importance of transparency and howthis can accelerate improvements across thegarment sector.

(For details of factories covered by thetransparency report, please visit:http://www.betterfactories.org/transparency)

RUPIAH APPRECIATED BY 8.8% SINCETHE END OF 2013

On 8 April, the rupiah closed at 11,289 per USdollar, the highest this year, appreciating by 8.8%from the five-year low of 12,281 rupiah per USdollar at the end of last year. With this gain, therupiah led the recent round of appreciation inemerging market currencies, which had beenweakened considerably amid earlier concerns ofQE3 tapering.

Improving economic fundamentals have supportedthe value of the rupiah. The country’s tradebalance returned to a surplus of US$785.3 millionin February, from a deficit of US$440 million inJanuary, exceeding analysts’ expectations andeven beating the central bank’s bullish estimate ofUS$760 million. At the same time, inflation, asmeasured by the consumer price index (CPI), hasslowed from 7.75% yoy in February to 7.32% yoyin March.

While expectations on a stable benchmark interestrate of 7.5% and a more business-friendlyenvironment after the coming presidential electionin July may strengthen the rupiah further,additional gains will likely be limited as thecurrency has been on a long rally since thebeginning of the year. According to businessinsiders, the impact of rupiah’s appreciation on

textile exports was limited as existing contractswere set at 11,500 rupiah per US dollar, but priceswill begin to be re-negotiated if the exchange ratepasses the 11,000 rupiah per US dollar level.

INDONESIA.

ELECTRICITY TARIFF TO BE INCREASEDBY 38.9-64.7% FOR INDUSTRIALCONSUMERS

In an attempt to curb deficits in the budget and thecurrent account, the House of Representatives andthe government decided on 21 January to reducesubsidies on electricity by 10.96 trillion rupiah. Asa result, electricity tariffs for listed companies usingmore than 200 kilovolt amperes (Group I3) andindustrial consumers using more than 30,000kilovolt amperes (Group I4) will increase by 38.9%and 64.7%, respectively.

The hike will be implemented in phases. Startingfrom 1 May, tariffs for Group I3 and Group I4 willbe raised by 8.6% and 13.3%, respectively, everytwo months. The last round of adjustment,according to the current plan, will be made on 1November.

The hike will hit listed garment and footwearmanufacturers, which belong to Group I3, andmore energy intensive upstream industries such asman-made fiber manufacturers and spinners. Inaddition to the problem of rising electricity cost,manufacturers in Indonesia are also encounteringfrequent power outages. Particularly for the textilesector, machineries may be damaged if operationsstop and restart abruptly due to power blackouts.

INDONESIA.

CONCERNS GROW OVER FIBERSOURCING FROM ANCIENT ANDENDANGERED FORESTS

In October 2013, Canada-based non-profitorganization Canopy launched its ‘Fashion Lovedby Forest’ initiative with the apparel industry tostop sourcing fibers from endangered forests –such as the rain forests in Indonesia. In April, the









INDONESIA.





INDONESIA.











INDONESIA.





INDONESIA.



http://www.betterfactories.org/transparency


campaign gained traction as H&M and Inditex(which owns Zara), two of world’s largest clothingbrands, added their strength to the cause.Together with more than a dozen other fashionicons, such as Eileen Fisher, Patagonia, prAna,and Lulemon Athletica, the participants of ‘FashionLoved by Forest’ support the initiative by settingout new sourcing commitments to ensure therayon and viscose fabrics in their clothes are notderived from ancient and endangered forests.

Environmental groups are calling on apparel andtextile firms to ensure they do not source woodpulp-based fibers, such as rayon and viscose, fromendangered forests, ahead of an expectedincrease in demand. Forest-based fibers currentlymake up about 5% of total textile industry inputs,but demand is expected to increase by 112% inthe next 40 years, according to Canopy. Aroundthe world, there is a rapid ramp-up in the pulpinginfrastructure that is looking to produce pulpspecifically for clothing production.

MANUFACTURING OUTPUT GREW BY 1.2%YOY IN FEBRUARY

Manufacturing output, as measured by the Volumeof Production Index (VoPI), grew at a slower rateof 1.2% yoy in February than the revised 5.0% yoygrowth posted in January, according to theNational Statistics Office.

On a year-on-year basis, sectors which contributedsignificantly to the output growth were ‘furnitureand fixtures’ (+130.6%), ‘tobacco products’(+102.6%), ‘machinery except electrical’ (+75.9%)and ‘publishing and printing’ (+53.1%). Meanwhile,production of ‘textiles’ expanded by 35.7% yoy inFebruary, while production of ‘footwear andwearing apparel’ declined by 20.1% yoy during thesame month.

Economic growth in the Philippines is expected tobe the strongest among the ASEAN-5 countries(Indonesia, Malaysia, the Philippines, Thailand andVietnam) in 2014. According to the latest projectionby the Asian Development Bank, GDP of thePhilippines will grow 6.4% yoy this year while theaverage GDP growth rate in the ASEAN-5countries will be 5.1% yoy.

PHILIPPINES.

FDI ROSE 20% YOY IN 2013

According to the Central Bank of the Philippines,net foreign direct investment (FDI) to thePhilippines reached US$3.9 billion in 2013, up by20% compared with 2012 and well above theofficial forecast of US$2.1 billion. Foreign investors’sustained confidence in the country mainly comesfrom its resilient economy, which witnessed a 7.2%yoy growth in real GDP and a moderate inflation of3% yoy in 2013.

By FDI components, non-residents’ netplacements in debt instruments issued by localaffiliates, which accounted for 64.7% of total FDI,increased more than five-fold to reach US$2.5billion in 2013 from US$0.4 billion in 2012.However, net equity capital inflows, which were thelargest component in 2012, fell sharply by 66.9%yoy to US$0.7 billion in 2013. Meanwhile, netreinvested earnings declined 14.4% yoy to US$0.7billion in 2013.

The gross equity capital inflows mainly came fromMexico, Japan, the US, British Virgin Islands andSingapore. Manufacturing, finance & insurance,real estate and water supply among others werethe most favored sectors.

Going forward, the central bank expects net FDIinflows to decrease to US$2.6 billion this year.








PHILIPPINES.













PHILIPPINES.







PHILIPPINES.

TRUCK BAN IN MANILA PROMPTEDBACKLASH FROM THE EXPORT SECTOR

According to an ordinance issued by theMetropolitan Manila Development Authority on 24February, eight-wheel trucks with a gross weight of4,500 kilograms and above are not permitted touse city roads from 5am to 10am and from 3pm to9pm on weekdays. The policy aims at reducingtraffic amid the beginning of construction works forcertain major toll road projects in the city.

However, the policy has created negative impacton the country’s export sector and thus prompted abacklash from truck drivers and local and foreignindustry groups since late February. Significantlyimpeding transportation between economic zonesin CALABARZON (i.e. Cavite, Laguna, Batangas,Rizal and Quezon) and the port of Manila, the truckban may delay exports such as metal componentsand garments in the short term and adverselyaffect GDP, employment and foreign investment inthe medium term.

According to Michael Raeuber, the president of theEuropean Chamber of Commerce of thePhilippines, the policy results in serious trafficbottlenecks and slows down trade in theCALABARZON region, an important industrial hubin the country. Other stakeholders also worry thatcompanies would incur extra costs and risks, suchas hijacking and robberies, during nighttimedeliveries. In a research note prepared by theCitigroup, the economic cost of ensuing trafficbottlenecks brought about by the policy isestimated to be at least 1% of the country’s GDP,which outweighs the economic benefit of around0.4% of the country’s GDP from reduced traffic inManila.

INDUSTRIAL PRODUCTION SHRANK FORTHE TWELFTH MONTH

Thailand’s manufacturing production index (MPI)slid by 10.4% yoy in March, the twelfth consecutivemonth that registered a decline, according to theOffice of Industrial Economics. The poorperformance was attributable to low consumerconfidence and weak household consumptionamid prolonged political unrest.

Among major sub-indices of the MPI,manufacturing of petroleum products, motorvehicles, jewelries and textiles showed downwardtrends in the month, while manufacturing ofwearing apparel expanded by 10.1% yoy.

At the same time, the overall capacity utilizationrate in March stood at 64.3%, an improvementfrom the revised 58.9% in February. For textilesmanufacturing, capacity utilization has continued toimprove, while the capacity utilization rate forapparel manufacturing decreased slightly to 41.4%in the month.

THAILAND.

GARMENT EXPORTS EXPECTED TO GROWBY 5% THIS YEAR

In January-February, Thailand’s garment exports(including clothing accessories) reached US$480.6million, posting a 2.2% growth over the sameperiod last year. Garment exports to Japan, thethird largest market for Thai garments, witnessed asharp increase of 13.4% yoy in the period, whileexports to the US and EU fell by 2.1% yoy and7.6% yoy, respectively.

As the domestic market remains weak due to lowconsumer confidence, garment manufacturers arerelying more on the export market this year. TheThai garment industry has received orders fromleading sportswear brands such as Nike andAdidas to produce 3 million World Cup shirts forthe coming FIFA World Cup 2014. Industry


PHILIPPINES.









THAILAND.





PHILIPPINES.









THAILAND.





insiders expect that the World Cup event, alongwith recovery of major export markets, will boostthe country’s garment exports by 5% this year.

Garment production has not been affected by thepolitical turmoil. The Thai garment industry,however, has been confronted with labourshortages and higher production cost due to theimplementation of the 300 baht daily minimumwage. To compete with manufacturers in otherlow-cost countries, Thai manufacturers constantlyfocus on product development and design.

THAILAND.

POLITICAL UNREST DAMPENS PRIVATEINVESTMENT

The six-month political deadlock in Thailand thathas started since November 2013 has weighedheavily on private investment. Without a fullyfunctioning government in place, investmentprojects face delays and prospective investorshesitate to commit funds to the country.

According to the Board of Investment (BOI), thegovernment agency for approving investmentprivileges, 291 investment projects worth 234.0billion baht were submitted for approval in the firstquarter, falling by 48.4% yoy in the number ofprojects and 10.6% yoy in value terms, while totalinvestment approved by the BOI dropped sharplyby 87.2% yoy to 34.8 billion baht in the sameperiod. Many large private investment projectsremain pending as new directors of the BOI werejust nominated by the caretaker government on 24April.

So far, existing investors are not yet withdrawingtheir funds from Thailand, as they tend tounderstand the political situation. But forprospective investors, the persistent politicaluncertainty may prompt them to turn elsewhere.

Political stability is likely to return in the secondhalf of this year after a new government is formed.The previous general election held in Februarywas disrupted by protests and annulled by the

court. The Election Commission is consideringholding the next general election before 20 July.

HONG KONG INVESTORS FLOCKED INTOTHE GARMENT SECTOR

The optimism created by the Trans-PacificPartnership now under negotiation has attractedChinese investors into the country’s garmentsector. Since the end of 2013, Chinese projectshave constituted more than 90% of the newinvestments in the sector, with companies fromHong Kong playing a major role.

On 19 March, Nam Dinh province also announcedthe construction of a garment and textile industrialpark with total investment of US$400 million, thelargest in the country. The main investors of theproject include VINATEX investment JSC (fromVietnam), Luenthai Holdings (from Hong Kong)and Sanshui Jialida Textile (from the ChineseMainland). 1,500 hectares in size, the park isexpected to attract investors from Hong Kong, theChinese Mainland and Taiwan into the field oftextile, dyeing, leather, garment and supportindustries.

Notable developments of other Hong Kongcompanies include the inauguration on 19 Marchof Esquel Group’s third garment factory in thecountry, located in Luong Son Industrial Zone inHoa Binh province; and approvals of HuafaCompany’s US$136-million textile spinning anddyeing plant in Tuhan Dao Industrial ZoneExtension in Long An province, Black Peony’sUS$100-million denim factory in Hai Yen IndustrialPark in Quang Ninh province, and Crystal TextileGroup’s US$500-million project for two plants inLaiwu Industrial Zone in Hai Duong province.




THAILAND.














THAILAND.












VIETNAM.

AUTOMATED CUSTOMS SYSTEM TO BEIMPLEMENTED NATIONWIDE IN JUNE

A new e-Customs system, known as the VietnamAutomated Cargo and Port Consolidated Systemand the Vietnam Customs Information System(VNACCS/VCIS), went live on 1 April in 39customs offices in nine cities and provinces –Hanoi, Hai Phong, Da Nang, Lang Son, QuangNinh, Bac Ninh, Dong Nai, Binh Duong and BaRia-Vung Tau – and was scheduled for applicationnationwide from 1 June. Based on the NACCS/CISof Japan, the VNACCS/VCIS is intended tosimplify customs clearance procedures, reduceclearance time, enhance the management capacityof customs authorities in line with the standards ofmodern customs, as well as cut costs and facilitatetrade. VNACCS/VCIS also purports to ensureVietnam’s compliance with the ASEAN SingleWindow initiative.

Although few companies were interested in usingthe new system, a number of enterprises werecompelled to join by the General Department ofCustoms. According to the news, nearly 4,000import-export enterprises that account for 80% ofcustoms declaration activities were asked to switchto the new system.

There were complaints about the new system’scomplexity, and the transitional period was forgedwith confusion, as custom procedures wereregulated by both old and new rules. Concernsabound for potential risks of non-compliance, asthere was no grace period for violations. Anotherconcern widely held was the chance of systemfailure, which could lead to severe interruptionsand delays in clearance procedures.

VIETNAM.

BETTER WORK VIETNAM EXPANDS TONORTHERN REGION

The Better Work Vietnam program, which aims toimprove the garment sector’s compliance withlabour standards and competitiveness in global

supply chains, will now be extended to the north ofthe country, after its successful implementation inthe south. In a recently signed Memorandum ofUnderstanding, organizers of the program – theInternational Labour Organization (ILO), theInternational Finance Corporation (IFC) and thecountry’s Ministry of Labour, Invalids and SocialAffairs (MoLISA) – agree to extend the programuntil 2019, and expand its coverage to the northernprovince of Hanoi and the surrounding localities,as well as to the footwear sector. Towards this end,a new office in Hanoi was launched on 19 March.

Through coaching, training and complianceassessments, Better Work Vietnam aims to alignprivate sector expectations with Vietnam’s lawsand core international labor standards. Since itslaunch in 2009, the Better Work Vietnam programhas reached nearly 300,000 workers in more than200 factories in the south, covering one-fourth ofall apparel manufacturers in the country. More than50 international buyers and retailers havesubscribed to the program.


Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14Consumer price index (yoy growth %) 4.2 4.1 4.7 4.5 - -Exports (yoy growth %) 23.9 43.7 - - - -Exports (US$ mn) 502.5 649.0 - - - -Of which:

Clothing (US$ mn) 358.3 450.7 - - - -Shoes (US$ mn) 23.4 33.9 - - - -

Imports (yoy growth %) -2.9 26.8 - - - -Imports (Cambodian riels bn) 1,051.1 1,398.7 - - - -Gasoline (riels/litre) 5.2 5.2 - - - -Diesel (riels/litre) 5.1 5.1 - - - -

* Data from December 2013 onward are not accessible on the website of the Ministry of Economy and Finance.Source: Ministry of Economy and Finance, Cambodia

Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14

Quarterly GDP (real yoy growth %) 5.7(4Q13) -

Production index of large and mediummanufacturing (yoy growth %) -0.1 1.8 2.8 1.9 3.8 -

Manufacturing PMI (HSBC) 50.9 50.3 50.9 51.0 50.5 50.1Real retail sales index (yoy growth %) 12.9 17.7 28.2 24.8 21.2 24.2Consumer price index (yoy growth %) 8.3 8.4 8.4 8.2 7.8 7.3Exports (yoy growth %) 2.4 -2.3 10.2 -5.9 -3.0 -Exports (FOB, US$ mn) 15,698.3 15,938.6 16,967.8 14,472.3 14,570.6 -Of which:

Textile and textile products (US$ mn) 1,050.7 967.0 1,103.8 1,106.7 1,053.0 -Footwear (US$ mn) 321.9 338.4 362.6 336.9 301.2 -Furniture (US$ mn) 135.1 131.4 150.9 138.8 151.7 -Sports requisites (US$ mn) 50.5 37.6 40.8 40.8 32.8 -

Imports (yoy growth %) -8.9 -10.5 -0.8 -3.5 -10.0 -Imports (US$ mn) 15,674.0 15,149.3 15,455.9 14,916.2 13,785.3 -

* Starting from January 2014, the base year of consumer price index has changed to 2012. Data prior to 2014 uses 2007 as the baseyear.Source: Statistics Indonesia, Bank Indonesia, HSBC PMI reports



























Quarterly GDP (real yoy growth %) 6.5(4Q13) -Value of production index, manufacturing(yoy growth %) 14.2 13.1 18.9 4.3 0.9 -Volume of production index,manufacturing (yoy growth %) 21.1 18.8 23.9 5.0 1.2 -

Producer price index (yoy growth %) -5.7 -4.8 -4.1 -0.7 -0.3 -Consumer price index (yoy growth %) 2.9 3.3 4.1 4.2 4.1 3.9Exports (yoy growth %) 14.0 18.9 15.8 9.2 24.4 -Exports (FOB,US$ mn) 5,025.6 4,294.0 4,599.4 4,379.0 4,654.2 -Of which:

Woodcrafts and furniture (US$ mn) 300.2 282.2 238.9 292.8 341.0 -Garments (US$ mn) 154.2 130.8 120.0 146.2 121.4 -

Imports (yoy growth %) -8.6 0.5 2.1 26.0 0.3 -Imports (FOB, US$ mn) 4,824.1 5,235.6 5,412.9 5,954.8 4,720.6 -Balance of trade (US$ mn) 201.6 -941.5 -813.5 -1,575.8 -66.4 -

Source: National Statistics Office, National Statistical Coordination Board


Quarterly GDP (real yoy growth %) 0.6(4Q13) -Industrial production index (value addedweight, not seasonally adjusted), yoygrowth %

-4.0 -10.7 -6.3 -5.6 -4.4 -10.4

Producer price index (yoy growth %) -0.1 0.3 1.0 1.2 1.1 1.4Consumer price index (yoy growth %) 1.5 1.9 1.7 1.9 2.0 2.1Exports (yoy growth %) -0.7 -4.2 1.8 -2.1 2.3 -3.2Exports (US$ mn) 19,379.5 18,736.4 18,425.4 17,892.9 18,344.6 19,918.3Of which:

Knitwear (US$ mn) 155.2 161.9 158.4 165.0 152.4 147.3Woven garments (US$ mn) 79.5 87.1 87.2 90.1 78.6 82.0

Toys, games and sports requisites(US$ mn) 71.8 65.3 61.5 59.7 62.4 72.1

Imports (yoy growth %) -5.4 -8.6 -9.9 -15.5 -16.6 -14.2Imports (US$ mn) 21,164.1 19,314.2 18,724.7 20,428.1 16,596.4 18,480.6Trade balance (US$ mn) -1,784.6 -577.8 -299.3 -2,535.2 1,748.2 1,437.7

Source: National Economic and Social Development Board, Office of Industrial Economics, Ministry of Commerce










-4.0 -10.7 -6.3 -5.6 -4.4 -10.4















-4.0 -10.7 -6.3 -5.6 -4.4 -10.4








Quarterly GDP (real yoy growth %) 6.0(4Q13) 5.0(1Q14)

Industrial production index (yoygrowth %) 5.9 5.7 7.0 3.0 15.2 4.7

Manufacturing PMI (HSBC) 51.5 50.3 51.8 52.1 51.0 51.3

Retail sales of consumer goods andservices (year-to-date, yoy growth %) 12.6 12.6 12.6 13.0 11.6 10.2

Price index of materials used forproduction (yoy growth %) 3.3(4Q13) 2.8(1Q14)

Producer price index for industrialproducts (yoy growth %) 6.9(4Q13) 5.2(1Q14)

Consumer price index (yoy growth %) 5.9 5.8 6.0 5.5 4.7 4.4Exports (year-to-date, yoy growth %) 16.0 15.7 15.4 -0.8 13.8 14.8Exports (US$ mn) 12,612.5 11,992.3 11,637.1 11,459.5 9,540.3 12,277.2Of which:

Textiles & garments (US$ mn) 1,748.8 1,470.8 1,723.0 1,904.9 1,045.1 1,516.3Footwear (US$ mn) 716.7 807.7 925.8 859.7 598.0 670.8Wood & wooden products (US$ mn) 520.6 520.1 637.9 533.5 379.8 519.0

Imports (year-to-date, yoy growth %) 15.9 15.3 16.1 -5.5 12.6 12.9Imports (US$ mn) 12,512.0 10,988.0 12,184.8 10,015.9 10,090.2 12,473.2

Source: General Statistics Office of Vietnam, General Department of Vietnam Customs, HSBC PMI reports


























OCTOBER 2013 - MARCH 2014

CAMBODIAN RIELUSD:KHR official exchange rate

Source: National Bank of Cambodia

INDONESIAN RUPIAHUSD:IDR buy rate

Source: Bank Indonesia

PHILIPPINE PESOUSD:PHP BSP reference rate

Source: Bangko Sentral ng Pilipinas (BSP)

THAI BAHTUSD:THB mid-rate

Source: Bank of Thailand

VIETNAMESE DONGUSD:VND buy rate of commercial banks

Source: State Bank of Vietnam

3,940

3,960

3,980

4,000

4,020

4,040

4,060

4,080

10,000

10,500

11,000

11,500

12,000

12,500

42.042.543.043.544.044.545.045.546.0

30.0

30.5

31.0

31.5

32.0

32.5

33.0

33.5

21,000

21,020

21,040

21,060

21,080

21,100

21,120

21,140

Appendix

International Logistics Performance Index, 2014(Rank out of 160 economies)

Bangladesh Cambodia China India Indonesia Malaysia Myanmar Pakistan Philippines Thailand Turkey VietnamOverall logistics performance 108 83 (↑18) 28 (↓2) 54 (↓8) 53 (↑6) 25 (↑4) 145 (↓16) 72 (↓1) 57 (↓5) 35 (↑3) 30 (↓3) 48 (↑5)Customs 138 71 (↑37) 38 (↓8) 65 (↓13) 55 (↑20) 27 (↑2) 150 (↓28) 58 (↓12) 47 (↑20) 36 (↑6) 34 (↓2) 61 (↑2)Infrastructure 138 79 (↑49) 23 (↑3) 58 (↓2) 56 (↑29) 26 (↑1) 137 (↓4) 69 (↑2) 75 (↓13) 30 (↑14) 27 (↓2) 44 (↑28)International shipments 80 78 (↑23) 22 (↑1) 44 (↑10) 74 (↓17) 10 (↑16) 151 (↓35) 56 (↑12) 35 (↑21) 39 (↓4) 48 (↓18) 42 (↓3)Logistics quality and competence 93 89 (↑14) 35 (↓7) 52 (↓14) 41 (↑21) 32 (↓2) 156 (↓46) 75 (↓3) 61 (↓22) 38 (↑11) 22 (↑4) 49 (↑33)Tracking and tracing 122 71 (↑7) 29 (↑2) 57 (↓3) 58 (↓6) 23 (↑5) 130 (↓1) 86 (↑4) 64 (↓25) 33 (↑12) 19 (↑10) 48 (↓1)Timeliness 75 129 (↓25) 36 (↓6) 51 (↓7) 50 (↓8) 31 (↓3) 117 (↑23) 123 (↓40) 90 (↓21) 29 (↑10) 41 (↓14) 56 (↓18)

Source: The Logistics Performance Index and Its Indicators (2014, 2012), the World Bank

Notes: ↑ and ↓ indicate an increase and a decrease in rank respectively, as compared to the rank in 2012. The number in bold refers to the highest rank in the index or an indicator among the twelveselected economies. Due to an insufficient number of responses or other data reliability concerns, Bangladesh was excluded from the International Logistics Performance Index sample for the year2012.


THE FUNG BUSINESS INTELLIGENCE CENTRE

The Fung Group is a privately held multinational group of companies headquartered in Hong Kong whose corebusinesses are trading, logistics, distribution and retailing. The Fung Group employs over 43,000 people across 40economies worldwide, generating total revenue of more than US$21.9 billion in 2012. Fung Holdings (1937) Limited, aprivately held business entity headquartered in Hong Kong, is the major shareholder of the Fung group of companies

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