Apple relocates 11 manufacturing units to Vietnam | VIR (9/6/23)
Apple has finalised the relocation of 11 of its audio device production facilities to Vietnam, marking a significant shift in the company’s global supply chain strategy.
The American tech giant’s vote of confidence in the Vietnamese manufacturing sector was discussed by Nguyen Thang Vuong from the Europe-America Market Department of the Ministry of Industry and Trade (MoIT) during an online forum on Vietnam’s role in the global supply chain on September 6.
“Meanwhile, Intel has initiated the expansion of its Phase 2 chip verification plant in Ho Chi Minh City, involving an investment amounting to a staggering $4 billion,” said Vuong.
According to Vuong, a shift in the global supply chain has become increasingly evident. For instance, besides the recent strategic moves and multi-billion dollar commitments from Apple and Intel, Danish conglomerate Lego is investing in a factory in the southern province of Binh Duong with an outlay of $1 billion.
“Several prominent American corporations, such as Boeing, Google, and Walmart, have announced plans to extend their supplier networks and manufacturing bases in Vietnam following extensive research into the local investment environment,” he added.
Particularly noteworthy is the colossal shift by Samsung in relocating its entire mobile phone production line predominantly to Vietnam and India. Remarkably, 60 per cent of Samsung’s global smartphone output is now manufactured in Vietnam.
This migration of manufacturing groups to Vietnam offers indigenous businesses enhanced access to Western markets and an influx of foreign direct investment (FDI), especially from Northeast Asia. However, these developments also bring formidable challenges for Vietnamese enterprises seeking to integrate into the expansive supply chains of these global juggernauts.
In an interview with local newspaper Tien Phong, Do Thi Thuy Huong, vice-chairwoman of the Vietnam Supporting Industries Association (VASI), highlighted that alongside Apple’s relocation, major conglomerates such as Foxconn, Luxshare, Pegatron, and Wistron are also expanding their existing manufacturing bases in Vietnam.
“The rapid influx of foreign capital, particularly in the electronics sector, is evident. Samsung’s investment in the largest research and development centre in Southeast Asia, valued at $220 million in Hanoi, serves as a testament. Another key player, Hansol Electronics from South Korea, recently secured investment permission for two projects in the southern province of Dong Nai, amounting to $100 million.”
To stay ahead and cater to these industry giants, VASI asserts that local governments need to formulate stronger policies to ensure domestic businesses possess the capability to assimilate technologies and compete sustainably in the market.
A prime focus should be on discerning, high-quality technologies that align with the existing technical prowess of domestic manufacturing and assembly groups. Crucially, any technology introduced should be environmentally conscious and promote the inclusion of Vietnamese suppliers within a stipulated timeframe.
Ngo Khai Hoan, deputy director of the Industrial Department under the MoIT, expressed that while Vietnam had previously capitalised on its inexpensive labour force, rising labour costs are now diminishing this advantage, especially when compared to nations like India, the Philippines, and Cambodia.
“Understanding the potential of domestic supporting industries is vital for attracting FDI. In light of this, the Industrial Department plans to foster initiatives that include policy development, capacity-building for local enterprises, and facilitating connections between domestic businesses and multinational corporations like Samsung and Toyota,” said Hoan.
Political movement: Washington does not want stability in Iraq and is angry with the people’s satisfaction with the government
The Secretary-General of the Jihad and Construction Movement, Jawad Rahim Al-Saadi, confirmed on Thursday that America and the enemies of Iraq do not want the stability of the situation, especially the security situation in the country, pointing out that what annoys them most at the present time is the people’s satisfaction with the government.
Al-Saadi told Al-Maalouma, “Iraq possesses strong intelligence services that are able to detect and thwart any attempt to cause a security breach or terrorist operation from outside the country before entering Iraqi territory.”
He added, “Iraq began to recover in security after achieving victory over terrorism, but there are those who are trying to raise problems and problems after finding that there is satisfaction and acceptance by the people towards the Sudanese government.”
And he indicated that “what angers the enemies of Iraq most, including the American side, is the people’s satisfaction with the government.”
Al-Saadi indicated that “there are those who seek to ensure the stability of the country and the continuation of security tensions in various regions and governorates.” link
America On The Throne Of Global Gold Reserves
The United States of America is the largest stock of gold reserves among the components of foreign reserves, with a total of 8133.5 tons recorded last July, according to the latest data issued by the World Gold Council.
According to the list of countries that reported their central banks’ reserves of the yellow metal in the latest disclosure last July, Germany came in second place in the list of the largest gold reserves with 3352.6 tons, the International Monetary Fund third with 2814 tons, Italy and France with 2451 tons and 2436 tons, respectively, while Russia came in sixth place with reserves of 2329.6 tons and China in seventh place with 2136.5 tons.
In the next three places, Switzerland retained eighth place at 1040,846 tons of gold, the Bank of Japan ninth with 797 tons, while India came in tenth place with 7.<> tons of precious metal.
Data from the World Gold Council indicate that Saudi Arabia retains the first place in the Arab world among the countries most hedged in gold, and is in an advanced rank globally, as it enjoys the 17th place with a total reserves of 323.1 tons, Lebanon is second in the Arab world (21st globally) with 286.8 tons, Algeria is in third place with 173.6 tons, Iraq is fourth with 132.6 tons of gold, while Egypt occupies fifth place in the Arab world with 125.9 tons.
Gold component ratio
Despite the ranking that takes into account the largest banks holding gold, the proportion of the yellow component varies from one bank to another, representing the US Central Bank 68.8 percent of foreign reserves, and in Germany the metal represents 67.9 percent of reserves, as well as Italy and France with two predominant rates at 65.1 percent and 66.8 percent, respectively, and the percentage of the precious metal at the Russian Central Bank is reduced to the level of 25 percent, four percent at the People’s Bank of China and 4.3 percent. percent of the Bank of Japan.
The figures reveal that global central banks continue to strengthen their gold reserves, as they recorded net purchases last July of 55 tons, which supports the view of the World Gold Council in the direction to hedge gold in the long term, and the People’s Bank of China comes again as the largest buyer, adding 23 tons during the month before last, thus strengthening its position as the largest buyer since the beginning of this year with a total of 126 tons, and came in the next place in terms of purchase, the Central Bank of Poland by 22 tonnes in July, bringing his total metal to 299 tons.
The Central Bank of Turkey was again among the buyers in July, boosting its reserves by another 17 tons, although on an annual basis it remains a net seller of 85 tons, given the intensive sell-off by its side of the metal between March and May, and in early August Russia revealed its intention to resume buying gold, however, information on the size or timing of any purchases was limited.
World Gold Council senior analyst Krishan Gopol sees in his council’s recent data on gold purchases by central banks evidence of high demand for the metal, and said that it is undeniable that demand is strong and that interest in the metal will remain in the coming period, especially with the return of former sellers to resume buying again, including Turkey.
Metal Kissing Glow
In his blog, Gopol points out that sales were lower than gold purchases last July, with the Central Bank of Uzbekistan buying 11 tonnes and the Central Bank of Kazakhstan buying four tons of the metal, two prominent and familiar sellers.
The map of countries’ acquisition of gold as a major component of reserves in their central banks has not changed, as Western European banks still have the largest balance of the metal with a total of 11776,<> tons, while America comes in second place, Central and Eastern Europe third, and East Asia fourth, while the banks of the Middle East and North Africa lagged to fifth place, then South Asian and Central Asian banks in sixth and seventh places, to the bottom of Latin American banks with the lowest recorded reserves of gold.
Gold has what drives it to glow in the coming period, especially with the high demand from central banks and expectations that they will stop tightening monetary policy, inflation risks are still high in conjunction with expectations of a subsequent recession in several economies, in addition to geopolitical risks that support the rise of the metal, which makes gold a good hedging asset, and data reveals that investment portfolios benefited greatly from gold returns during such times.
The presence of these factors combined in the minds of central bankers represents a sufficient incentive to continue buying gold, as they have already expressed their intentions to continue acquiring it in a recent survey of the World Gold Council, during which they are likely to be in demand for the metal with these concerns strong in the coming period, as central banks’ appetite is still open to continue buying about 24% of these institutions over the next 12 months.
Interesting. Will this bring in a new gold backed dollar?
Source: Dinar Recaps
Global finance system fragmenting: UN chief – Shafaq News (9/7/23)
The world risks a “great fracture” of its economic and financial systems, U.N. Secretary-General António Guterres said on Thursday at a summit with Southeast Asia’s ASEAN bloc, China, the United States and others in Indonesia.
In a wide-ranging speech that touched on geopolitical tension, multilateral development finance and climate change, Guterres called on world leaders to find peaceful and inclusive solutions to the challenges facing the world.
“There is a real risk of fragmentation – of a great fracture in world economic and financial systems; with diverging strategies on technology and artificial intelligence and conflicting security frameworks,” he said.
He called for a mechanism to provide relief for debt-strapped developing economies, to include payment suspensions, longer lending terms and lower interest rates.
He also voiced support for re-channelling an additional $100 billion of International Monetary Fund’s Special Drawing Rights through multilateral development banks to increase liquidity and support developing economies’ needs.
Rich countries agreed in 2021 to re-channel the unused funds, an international reserve currency, to poor countries.
At a Paris summit in June this year, world leaders backed a push for multilateral development banks like the World Bank to put more capital at risk to boost lending.
World Bank president Ajay Banga outlined a “toolkit” at that summit, including offering a pause in debt repayments, giving countries flexibility to redirect funds for emergency response, providing new types of insurance to help development projects and helping governments build advance-emergency systems.
Guterres also said he remained “deeply concerned” over the “worsening political, humanitarian, and human rights” situation in Myanmar, a nation besieged by war since a 2021 military coup.
“I reiterate my urgent call on the military authorities of Myanmar to listen to the aspirations of its people, release all political prisoners, and open the door to a return to democratic rule,” he said.
In a statement on Wednesday, ASEAN chair Indonesia said regional leaders expressed “grave concern” over a lack of substantial progress on their five-point peace plan for Myanmar.
ASEAN leaders are set to hold talks with the United Nations later on Thursday.
Indonesia proposes critical minerals trade deal with US | Reuters (9/7/23)
Indonesia has asked the United States to begin talks on a trade deal for critical minerals so that exports from the Southeast Asian country can be covered under the U.S. Inflation Reduction Act, an Indonesian ministry said on Thursday.
The request was made when Indonesian President Joko Widodo met with U.S. Vice President Kamala Harris on the sidelines of meetings hosted by the Association of Southeast Asian Nations (ASEAN) in Jakarta on Wednesday.
Under guidelines for the U.S. law issued in March, Washington has required that a certain amount of critical minerals in electric vehicle (EV) batteries be produced or assembled in North America or a free trade partner, for EVs sold in the United States to be eligible for tax credits.
Indonesia does not have a free trade agreement with the United States, but the resource-rich country has ambitions to become a major player in the manufacturing of EVs and their batteries, leveraging its vast nickel reserves.
“Indonesia is a producer and holder of the world’s biggest nickel reserves amounting to 21 million metric tons, so Indonesia can become a supplier for … batteries and EVs in the U.S.,” Jokowi, as the president is popularly known, was quoted as saying by the Indonesian ministry of economic affairs.
“Indonesia invites the U.S. to discuss the formation of the Critical Mineral Agreement,” Jokowi added.
The president also hoped that Indonesia’s involvement in the U.S.-led Indo-Pacific Economic Framework (IPEF) could allow its mineral exports to be recognised for “green subsidies” under the inflation act, according to the ministry’s statement.
The plan to propose a limited free trade deal with the United States was first brought up in April by senior Indonesian minister Luhut Pandjaitan, who said Jakarta wanted to offer Washington an agreement akin to the March deal between Japan and the Western power for EV battery minerals.
Harris, during the opening speech of the bilateral meeting, said she would continue to work with Indonesia to build supply chains that included “critical minerals required to expand our clean energy economies” and to boost trade between the two countries through IPEF.
President Biden’s visit (Sep 10-11) to create impetus for Vietnam-US ties: Ambassador | Vietnam+ (9/7/23)
The visit of US President Joseph R. Biden, Jr. to Vietnam on September 10-11 will be an occasion for leaders of both countries to look back at the past 10-year journey since the establishment of their comprehensive partnership, said Ambassador Pham Quang Vinh, former Deputy Foreign Minister and former Ambassador of Vietnam to the US.
In an interview granted to the Vietnam News Agency ahead of the US President’s visit, the veteran diplomat said the visit is also an occasion for the two sides to create a new impetus and define the orientation for the relations in the next decades.
He expected that the two sides will expand cooperation to other fields, such as digital transformation and green transition, besides education-training and war aftermath settlement, in which he believes great room still remains for enhancing collaboration.
The ambassador stressed that the past decade has seen strong and comprehensive development of the Vietnam-US relations.
The two sides have been strengthening mutual understanding, building trust and creating a stable and long-term framework for win-win cooperation. Leaders of the two countries have made many mutual visits, creating the political foundation for bilateral ties to grow.
He noted that development has been seen across all pillars of the bilateral relationship, from politics-diplomacy to economy, trade, investment, science-technology, and education, and in both bilateral and multilateral frameworks.
Vinh particularly highlighted economic-trade collaboration as the bright spot in bilateral ties. He cited statistics that show two-way trade surged almost four times 10 years after the establishment of the Vietnam-US comprehensive partnership, from 35-36 billion USD in 2013 to over 123 billion USD at present.
“I think that the talks between Party General Secretary Nguyen Phu Trong and President Biden (in the upcoming visit) will further deepen the guiding principle of bilateral relations which is to develop the ties based on respect for each other’s independence, sovereignty, territorial integrity and political institutions, mutual understanding, equal and win-win cooperation, and in the spirit of putting aside the past, overcoming differences and promoting similarities towards the future,” Ambassador Vinh said.
Source: Dinar Recaps
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