Investment implications of the US-China trade war

November 16, 2018

HONG KONG - The ongoing US-China trade war has underlined the risk of concentrating production in a single country and has triggered a restructuring of supply chains, according to ANZ Bank.

"As businesses look to diversify their production bases, important considerations will include labour costs and skills, trade facilitation capability, domestic political stability and international relations as well as the presence of existing operations or industrial clusters in the host country," it says.

"Business surveys suggest Southeast Asia has emerged as the top destination of choice. But within the region, there will be outperformers.

"In our view, Vietnam is best placed to benefit from investment diversions out of China, while Thailand and Singapore also stand to be among the key beneficiaries." (ATI).