Asean
Inflation Squeezes Vietnamese Workers
Vietnam recently devalued its currency, the dong, by 9.3 percent against the dollar. Analysts say soaring inflation here makes life harder for many Vietnamese workers. Consumer prices in Vietnam this January were more than 12 percent higher than they were a year ago, reflecting rising costs of food, fuel and household goods. High inflation is putting pressure on workers. Nguyen Huy Thinh drives a bus in downtown Hanoi. He says he has trouble getting by on his $250 monthly salary. He says that while prices for gasoline and electricity are increasing, his salary stays the same. That makes it hard to support his family. Despite a decade of strong growth, Vietnam had a $12.4 billion trade deficit last year, and inflation surpassed 11 percent for the year, despite the government’s attempt to limit it to 8 percent. To contain inflation and cut the trade deficit, Vietnam devalued its currency, the dong, by 9.3 percent against the dollar earlier this month. The devaluation was the fourth since 2009. Both Moody’s Investors Service and Standard & Poor’s downgraded Vietnam’s sovereign debt rating in December after state-owned shipbuilding conglomerate Vinashin defaulted on payment for a $600 million. Having a lower rating makes it harder for Vietnam to borrow money abroad. Adam McCarty is the chief economist for the consulting firm Mekong Economics, in Vietnam. He says the economy is not in crisis, but inflation is taking a toll on average workers. “Normally poorer-than-average people on salaries or pensions are the ones who lose when inflation is high, and then more broadly, the pace of generating new jobs slows down somewhat if the economy’s got trouble,” McCarty said. McCarty said inflation also makes it harder for middle-class Vietnamese to buy property. Some financial market analysts praise Vietnam for devaluing the dong, saying the new value better reflects prices on the black market, where traders exchange dong for gold and dollars. But other economists have warned that the government may need to do more to cap inflation and protect the economy.
Vietnam recently devalued its currency, the dong, by 9.3 percent against the dollar. Analysts say soaring inflation here makes life harder for many Vietnamese workers.
Consumer prices in Vietnam this January were more than 12 percent higher than they were a year ago, reflecting rising costs of food, fuel and household goods.
High inflation is putting pressure on workers.
Nguyen Huy Thinh drives a bus in downtown Hanoi. He says he has trouble getting by on his $250 monthly salary. He says that while prices for gasoline and electricity are increasing, his salary stays the same. That makes it hard to support his family.
Despite a decade of strong growth, Vietnam had a $12.4 billion trade deficit last year, and inflation surpassed 11 percent for the year, despite the government’s attempt to limit it to 8 percent.
To contain inflation and cut the trade deficit, Vietnam devalued its currency, the dong, by 9.3 percent against the dollar earlier this month. The devaluation was the fourth since 2009.
Both Moody’s Investors Service and Standard & Poor’s downgraded Vietnam’s sovereign debt rating in December after state-owned shipbuilding conglomerate Vinashin defaulted on payment for a $600 million.
Having a lower rating makes it harder for Vietnam to borrow money abroad.
Adam McCarty is the chief economist for the consulting firm Mekong Economics, in Vietnam. He says the economy is not in crisis, but inflation is taking a toll on average workers.
“Normally poorer-than-average people on salaries or pensions are the ones who lose when inflation is high, and then more broadly, the pace of generating new jobs slows down somewhat if the economy’s got trouble,” McCarty said.
McCarty said inflation also makes it harder for middle-class Vietnamese to buy property.
Some financial market analysts praise Vietnam for devaluing the dong, saying the new value better reflects prices on the black market, where traders exchange dong for gold and dollars. But other economists have warned that the government may need to do more to cap inflation and protect the economy.
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Inflation Squeezes Vietnamese Workers
Asean
Deadly Floods and Landslides Strike Indonesia and Thailand – Vietnam Plus
At least seven people were killed, two others were injured and some were likely to be missing after flash floods and landslides hit the Indonesian eastern province of Maluku on the morning of August 25, according to the locality’s disaster management and mitigation office.
Heavy rainfall, which began on August 24, has triggered the disasters in Ternate city. Many local residents are in urgent need of support, authorities said.
Soldiers, police, local search and rescue personnel, disaster management staff, and volunteers are all involved in the ongoing rescue efforts, which include evacuating those trapped by the landslides and recovering materials from homes swept away by the floods.
Meanwhile in Thailand, local authorities reported that the death toll from a landslide in the popular resort province of Phuket on August 23 has risen to 13, including a Russian couple.
Source : Floods, landslides kill many in Indonesia, Thailand – Vietnam Plus
Asean
Tug of War in Southeast Asia: Can ASEAN-China Dialogue Shift the Scales Toward Peace? – An Analysis
The ASEAN-China dialogue is vital for regional stability, addressing economic cooperation and security challenges, particularly in the South China Sea, amidst significant geopolitical complexities and ongoing territorial disputes.
ASEAN-China Dialogue: A Path Towards Cooperation
The ASEAN-China dialogue plays a pivotal role in Southeast Asia’s diplomacy, fostering economic collaboration while addressing security challenges. Despite advances, particularly in managing tensions in the South China Sea, significant barriers remain to achieving lasting peace and stability in the region. ASEAN’s capacity to maintain its unity and centrality is crucial amidst complex power dynamics involving China and other global players.
Navigating Tensions and Economic Relations
A pressing concern within this dialogue is the South China Sea territorial disputes, which involve multiple ASEAN states and China. The militarization of the area raises alarm among regional stakeholders, necessitating urgent negotiations for a Code of Conduct (COC) to manage conflicts. Additionally, the growing economic interdependence fostered by initiatives like the Regional Comprehensive Economic Partnership (RCEP) strengthens ASEAN-China ties, yet it also raises concerns about potential political leverage influencing member states’ autonomy.
The Challenge of Regional Stability
While the ASEAN-China dialogue offers a framework for promoting peace, its effectiveness is conditioned by broader geopolitical contexts, including China’s rivalry with the United States. The success of this dialogue rests on sustaining a commitment to multilateralism and peaceful dispute resolution. As ASEAN adapts to these complex dynamics, it must reinforce its unity and cooperative strategies, ensuring the region’s stability amid evolving challenges.
Source : Tug Of War In Southeast Asia: Will ASEAN-China Dialogue Tip The Balance Towards Peace? – Analysis
Asean
Cambodia Invites Business Leaders to Join the 21st China-ASEAN Expo in Nanning
Cambodia invites businesspeople to the 21st China-ASEAN Expo in Nanning, promoting trade and investment with incentives like hotel coupons and networking opportunities in various sectors.
Cambodia Invites Participation in CAEXPO 2024
Cambodia is actively encouraging business leaders, investors, and service providers to participate in the upcoming 21st China-ASEAN Expo (CAEXPO), set to take place from September 24-28 in Nanning, China. According to a Ministry of Commerce announcement, CAEXPO serves as a vital platform for trade and investment collaborations between ASEAN nations and China.
To facilitate Cambodian participation, the Ministry invites interested individuals to apply as Trade Visitors by August 31, 2024. Participants will benefit from hotel coupons, dining vouchers, and shuttle services to the expo venue. Furthermore, attendees can engage in business matchmaking in sectors such as food processing, digital technology, and renewable energy products.
Kin Phea, from the Royal Academy of Cambodia, emphasized the advancements in China-ASEAN relations, particularly concerning economic cooperation, tourism, and cultural exchanges. He noted that both sides have become each other’s largest trading partners, enhancing collaboration through the Belt and Road initiative, focusing on infrastructure and sustainable development.
Source : Cambodia encourages businesspeople to partake in 21st China-ASEAN Expo in Nanning
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