This could mark an opportunity for Cambodia\u2019s burgeoning textile industry to gain export market share from China, says Anirban Lahiri, Head of Research at VNDirect Securities Corp. He points to Thanh Cong Textile Garment JSC in neighboring Vietnam that operates a production chain for yarn and garment products, and expects to benefit from the trade war.<\/p>\n
Fabric products imported from Vietnam are being levied a 17.5 percent tariff, compared to 25 percent levy on Chinese fabric goods.<\/p>\n
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Textiles are the second-largest category of Chinese exports to the US and although largely exempt under current tariffs, \u201cit could see a 10 times increase in tariff coverage in the event of a trade war escalation,\u201d he projects.<\/p>\n
\u201cGiven Cambodia\u2019s close sovereign relationship with China and easy access to land, it is possible that Chinese factories in other labour intensive sectors such as electronics and parts assembly could move to Cambodia as well,\u201d Anirban tells Capital Cambodia.<\/p>\n
\u201cAlso, Cambodia is an outsized beneficiary of Chinese capital, so Chinese citizens will likely be keener to move their money and assets out of China in the event of a prolonged trade war. You might see more Chinese money flowing into property and tourism assets here. As Cambodia is a low cost destination for Chinese tourists, I don\u2019t see tourist arrivals falling off a cliff unless the Chinese economy slows dramatically due to the trade war,\u201d Anirban says.<\/p>\n
Regional bets<\/strong><\/p>\n Elsewhere, the US-China trade dispute has \u201ccreated a unique opportunity\u201d for Malaysia due to the nation\u2019s perceived position as a safe haven for manufacturing investors, says CLSA analyst Sue Lin Lim.<\/p>\n Investors should keep watch on foreign direct investments and private investment flows in Malaysia – with a focus on the states of Penang and Johor, home to industrial clusters, Lim says.<\/p>\n \u201cIn addition, the Industry 4.0 blueprint aims to make Malaysia the prime destination for high-tech industries, including the development of an aerospace-industry hub,\u201d he adds. CapCam<\/p>\n","protected":false},"excerpt":{"rendered":" Investors are entering 2019 with wary thoughts after a year of weak performance characterised by extreme bouts of volatility. The S&P 500, considered the bellwether of stock performance, ended 2018 with its biggest yearly loss since the global financial crisis.<\/p>\n","protected":false},"author":3,"featured_media":986,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_FSMCFIC_featured_image_caption":"","_FSMCFIC_featured_image_nocaption":"","_FSMCFIC_featured_image_hide":"","footnotes":""},"categories":[3],"tags":[70,69,68,71,48],"yoast_head":"\n