ASEAN Serves as Sliver Lining to Taiwan's Continuously Shrinking Export Orders

In recent months, Taiwan experienced a decline in export orders from key trade partners including the US, China, Hong Kong, and the ASEAN region, as reported by the Ministry of Economic Affairs (MOEA). However, there was a turnaround in April, when Taiwan received diverted orders from the ASEAN region, resulting in an extraordinary record-breaking order amount of US$6.44 billion.

Taiwan's overall export orders have been on a downward trend for several months in a row. In April, orders from the U.S. dropped 15.2% year on year in terms of value, while those from China (Hong Kong) and the EU declined even more sharply by 24.2% and 26.6%, respectively. At the same time, orders for ICT products from ASEAN edged up by 0.1 percent or represented an increase of US$740 million.

MOEA Department of Statistics highlights that this export growth in the ASEAN region is primarily attributed to diverted orders. Manufacturers who initially intended to place orders in the EU made a strategic decision to switch their focus to the ASEAN region instead. The redirection of orders played a crucial role in driving the observed increase in export orders within the ASEAN market.

Taiwan still needs time to see its export orders regain steam, given that China is for now fretted by lukewarm domestic market demand while Europe is also upset by economic slowdown and shrinking local consumer demand. Worth mentioning is that the Department of Statistics adds, in China, there has been a notable growth of 43.8% in the catering industry and 15.9% in the retail industry compared to last year. However, it is important to note that these figures are largely attributed to the ease of COVID lockdown policies in Shanghai during the corresponding period last year.

Director General Huang Yu-Ling of the MOEA Department of Statistics furthers that market demand for automobiles, oil, and clothing in China remains robust, which, however, are not Taiwanese exporters' fortes.