New Opportunities Arise in Vietnam, But It’s Risky to Invest There
Since the outbreak of the Sino-U.S. trade disputes in 2019, the Vietnamese government has issued a series of preferential tariff policies, and some enterprises there have won a large number of orders from Chinese counterparts whose products are set to export to Europe and the United States. The market is rapidly expanding, and companies with sufficient capital are beginning to frantically grab land and expand. This is a market where large enterprises are lined up but lack mature industrial supply chains.
In a market that has been rapidly developing with capital, and industrial giants flocking here to do business, it has always lacked a stable and suitable internal and external environment. As with all past gold rush stories, everyone found that they were actually making a risky investment, only to find out too late. Some people began to reflect on whether Vietnam is still worth moving to if there were no trade disputes. The real reason for the early popularity is that these supply chain companies cannot resist the temptation for greater short-term profits provided by large manufacturers.
Young People’s Spending Habits Have Profound Impact on Economy
Young people who have strong spending desire and dare to borrow money have been the main force of consumer credit in the past. Credit cards and other financial products are already the basic payment method for daily shopping for young people in China. However, this year everything has changed. Affected by the pandemic, the consumption habits of young Chinese have changed from radical to conservative, and their types of purchases have switched from luxury products to daily necessities. Even if the economy picks up, young people’s new consumption habits may continue like this for some time.
As the epidemic has been brought under control, various economic indicators in China have gradually recovered. Although many economists have predicted that as the economy recovers, people’s consumption will rebound, China’s younger generation has shown unprecedented restraint and calmness in consumption attitudes. The change of their consumption habits will bring opportunities and challenges to the consumer market.
Flooding Disaster in Southern China Becomes Critical
Since the beginning of June, southern China has suffered heavy rains, and rainfall in many places has set new records. The National Meteorological Center has issued rainstorm warnings for 40 days, becoming the longest time since the rainstorm warnings were launched in 2007.
An expert said in an exclusive interview with the Caijing reporter that so far, this year’s rainstorm has been slightly weaker than 1998 in terms of duration, intensity and impact. But he also noted that one variable in the future is whether it will continue to rain in the Yangtze drainage basin. If it continues to rain, floods in the south will worsen. For these disaster-affected people, in addition to the government’s relief and resettlement, reducing losses and helping them resume their daily lives as soon as possible is a critical issue. An expert said that the traditional disaster relief model would have difficulty solving these problems, and there should be a new mechanism to deal with disaster risks.
China’s Capital Market Cools Down in a Healthier Manner
On July 13, the Shanghai Composite Index reached a maximum of 3458.79 points. Market sentiment was ignited by the strong surge of A-shares. But not for long, the accelerated A-shares suddenly slowed down. The market generally believes that the main force leading this round of rebound is the northbound funds, which have always been regarded as smart funds.
In the beginning of July, the bull market came into sight, but at the same time, bubbles are brewing. The regulators have also decisively introduced appropriate policies to contain the market mania, clean up the market and eliminate risks. Foreign investment has been moving in and out quickly, and the supervising authorities also took measures to cool down the market. Against this background, A-shares that accelerated in July ushered in a major adjustment, before the market returned to rationality. In the context of economic recovery, the mad bull market will not repeat itself, and A-shares will function in a more healthier manner.