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ASEAN-bound exports hit all-time high

2021/07/21 | By EDN

The Economic Ministry Department of Statistics' latest statistics showed a booming performance for export orders in June, specifically from the ASEAN region, amounting to a record-breaking USD$5.45 billion and an over 40% annual increase.

The government report also highlighted that major export destinations in the U.S., China, Hong Kong, and Europe saw new highs in terms of comparing same-month statistics over the years, with growth rates greater than 24%.

Statistics Department Director Huang Yu-ling analyzed that the main momentum behind ASEAN's significant June performance came from technological goods. Among the orders, information and communication products increased by USD$340 million; graphics cards contributed nearly 20%; electronic products increased by USD$320 million; followed by chips and foundries. In addition, basic metal, plastics, and rubber products in traditional goods also performed well.

Huang cited the U.S-China trade war as the main turning point for many manufacturers, as they chose to move their supply chains to ASEAN countries to avoid rising costs. In addition, due to the rising wages in China, factories also considered the ASEAN region more favorable considering the lower labor costs.

However, the COVID-19 outbreak in Vietnam, which is heavily invested by Taiwanese businesses, has recently heated up, prompting tightening restrictions from the government. Taiwanese factories based in Vietnam, including Feng Tay, Pou Chen, and Zhiqiang-KY, have all announced suspension of work. Regarding whether the Vietnamese outbreak would impact overseas production bases, Huang said that the local short-term restrictions mean factories can still complete orders through overtime or capacity allocation.

The Economic Ministry will continue to be kept abreast of the situation on the ground, Huang said.

The export performance bound for the U.S., Hong Kong, Europe, and regions were also noteworthy, with volume and value hitting a new high in the same month. U.S. ranked first among non-ASEAN countries, with an order value of USD$16.48 billion, an annual increase of 24%, and marking a 17-month consecutive growth. China and Hong Kong ranked second with an order value of US$14.43 billion, a yearly increase of 36.7%, while Europe-bound orders were recorded at US$9.28 billion in value.

Photo credit: UDN file photoPhoto credit: UDN file photo