ASEAN emerges as favoured destination for US imports

ASEAN countries exported $67.2 billion worth of goods to the US in the first quarter of 2024, surpassing exports to China which reached $57 billion. This is the first time in six quarters that the US has been the leading export destination for the region.

Factors driving the shift:

• The US is increasingly sourcing semiconductors and electrical parts from ASEAN nations to reduce dependence on China.
• China’s lacklustre economic performance and rising production costs are making ASEAN a more attractive alternative.
• The US-China trade war is prompting American companies to move production out of China, benefiting Malaysia.
• Vietnam’s exports to the US have surged by 24 per cent in the Q1, driven by competitive pricing and a focus on electronics, agriculture, and textiles.
• Thailand is also shifting its export focus, with agricultural and industrial products driving a 9.8 per cent increase in exports to the US in the Q1, while exports to China fell by 5.1 per cent.

Attribution: Nikkei Asia