10/11/2017 Asia Business Report


10/11/2017

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LineFromTo

She was a Brexit campaigner.

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Now on BBC News, all the latest

business news live from Singapore.

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As the APEC summit in Vietnam kicks

off, we find out what the

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negotiations might mean for the host

country. And global retailers are

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getting ready for the biggest day in

Asia for on line sales, Singles Day!

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Good morning, Asia. Hello, world.

Welcome to another edition of Asia

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Business Report. I'm Rico Hizon.

Thank you for joining me. It

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Business Report. I'm Rico Hizon.

Thank you for joining me. It is

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another exciting Friday! We start

with US President Donald Trump. He

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arrives in Vietnam very soon to

attend the APEC summit. Earlier this

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year, President Trump pulled out of

the Trans-Pacific Partnership

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arrangement, dealing a blow to the

free-trade ambitions of APEC. China

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is trying to gain economic power in

the region at the same time. We are

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joined from Vietnam. She is right

outside the summit site. It looks

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like it is all about trade and

business.

Yes, indeed. As you can

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see, people are lining up and are

getting ready to listen to many

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speeches from foreign leaders from

the APEC economies, like the

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Japanese Prime Minister, the New

Zealand Prime Minister, and also,

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the speech everyone is waiting for,

Donald Trump's speech, when he

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presents his vision of what the US's

engagement in Asia on the trade

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front and politically, frankly, will

look like. There has been a lot of

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disappointment with the US pulling

out of the TPP, but the other 11

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economies that decided to go ahead

with the deal had said to me that if

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the US does not want to negotiate,

they will continue without it.

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Listen to what the Australian Trade

Minister told me about a new deal

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taking place.

History has told us

that countries that believe they can

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put up barriers to trade and tariffs

thinking that will enrich those

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countries, they will be worse off.

They will have more poor people as a

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result for adopting those policies

that frankly don't make sense.

That

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was the Australian Trade Minister

speaking to me about the fact that

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if countries like the US decide to

pull out of trade deals, well, Asia

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and other economies will go ahead

without it. That is what I have been

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getting from many people I have been

speaking to add the summit. It is

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about the fact the US's influence in

the region is waning at a time China

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is getting more powerful and

influential. I can point to the fact

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President Xi Jinping will be

speaking after Donald Trump. And

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there's rivalry between the US and

China in the region is what many

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garment exporters and businesses in

Vietnam have been telling me in the

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past few days.

Made in Vietnam but

sold in New York. Vietnam is one of

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the world's biggest garment

exporters. And you can see why at

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this factory in Ho Chi Minh City

which produces everything from suits

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to Coates every single day. --

coats. Some of the best-known brands

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in America are made here under the

watchful eye of Michael. The US is

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still his biggest customer

discipling out of the TPP, but that

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could change the pillar in the last

two months we have seen sales

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increase with China. That is a

probable business, a positive force,

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in the near future. China is already

a major customer for Vietnam's

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biggest coffee exporter and grains

provider. It sells rice to China but

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also exports to the US. The German

says Vietnam needs to balance these

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interests. TRANSLATION:

The US and

China are both powerful countries,

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but they also are locked in

conflict. They want to drag Vietnam

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to side, and we should take

advantage.

Remember, the economy of

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Vietnam is still pretty basic, about

supplying raw materials and produce

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to other markets and labour

intensive manufacturing. That is why

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trade is so important. If the

original U.S.-led TPP deal had gone

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through it could have boosted the

economy of Vietnam by 10% over the

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next few decades, which would have

lifted the income of people out

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here. That is why free-trade is on

the agenda at APEC which is on the

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edge of the South China Sea. Both

Vietnam and China have clashed over

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the waters, but the lack of

engagement from the US means they

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have to go closer to Beijing.

TRANSLATION:

The US is one of the

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most important markets for Vietnam.

We were disappointed when they

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pulled out of the TPP. We hope they

will join it again, but we are also

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developing links with other

partners, including China.

Back at

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the garment factory, another

shipment heads to American stores.

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Trade has always trumped politics in

Asia. Be more business you do here,

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the more influence you have. By

Vietnam is now stuck in between the

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two civil -- superpowers of the

world. Chinese and US officials say

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they rounded up more than $250

billion in deals on Donald Trump's

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maiden trip to Beijing to be they

covered imports and exports. Some

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analysts are questioning how likely

it is these agreements will

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materialise. We are joined by my

colleague for more. This sounds

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promising, $250 billion.

It does so

be it covers goods from aeroplane

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Stute US beef. President Trump has

been critical chastising the Chinese

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as having an unfair advantage in

terms of trade. In 2016 alone, the

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US had a $247 billion trade deficit

in goods with China. This is showing

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back at home that he may be bringing

in more jobs and revenue.

Of course,

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everything will have to wait to see

how it all plays out. One more

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question before we let you go. It

seems he is turning the tables here,

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not blaming China, but saying the

previous US president is to blame

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for the deficit.

He took a step back

and changed his tune. There was

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laughter when he said I am not

actually blaming the Chinese. This

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is his way of reaching some common

ground. They have many issues

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politically and economically to get

rid of.

Thank you for the update and

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have a great weekend. Tomorrow is

the 11th of November, also known as

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Singles Day if you are a big on line

shopper. Alibaba created the event

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as a marketing gimmick but it is now

the world's biggest on line shopping

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day. Last year, Chinese shoppers

spent a record $18 billion on

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Alibaba's platforms in just 24

hours. In Southeast Asia, some are

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browsing and buying on line up to

four days earlier. They see a 254%

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increase in sales on Singles Day.

There have been increases recently

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as well. What can we expect this

year? I spoke to someone earlier,

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the general manager for the

advertising firm, Video Southeast

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Asia.

It is the biggest shopping day

by far in this region. When I say

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this region, I'm in Southeast Asia.

We are seeing an increase in sales

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of 254% compared to the previous

month.

There is a spillover from the

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greater China market to Southeast

Asia?

That is right. There is an

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evolution of the ecosystem here. The

more we are seeing this, the more we

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are seeing it on line as well.

This

will be much bigger than the

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Thanksgiving day sales in the US.

It

is getting bigger. Look at China.

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This is by far bigger. Southeast

Asia, I want to mention, is, as a

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whole, is a market that is

developing so fast we are calling it

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the next China when it comes to on

line retail.

Singles Day is focused

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on Alibaba and JB.com. They are the

largest e-commerce sites in China.

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What about in Southeast Asia?

Amazon, the likes of art, can they

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compete?

-- that. They have a strong

presence in the country. We are

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seeing they are extremely aggressive

and present everywhere during these

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promotional days. They are one of

the biggest at this point in time in

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Southeast Asia, but you have

newcomers as well and all the giants

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appearing in the region. -- older

giants. A quick look at the markets.

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As you can see, they are down across

the board because Wall Street's

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stocks extended losses last night

when Republican politicians said

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they could be a one-year delay in

the tax cut until 2019. The Nikkei

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is down as well.

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