The Impact of China and Vietnam’s Economic Growth on the Exports Performances of the ASEAN Countries

The worldwide electronics industry continued to be one of the most lucrative industrial sectors in the world economy, outpacing all other sectors that produce commodities in terms of income. China is only second to the United States (USA) in terms of its contribution to the global value added in the electronics industry, while Vietnam has in recent years shown a dramatic rise in its electronics exports. This chapter seeks to examine the impact of China’s economic growth and the emergence of Vietnam on export performances of ASEAN countries in selected electronic products (SITC 751, SITC 752, and SITC 764). The study looks at the trends of US imports of selected electronic products and the relative export performances in terms of export values, export share, and the ratio of ASEAN-6 share of exports to those of China. The findings revealed that the ASEAN countries began to feel the effects of China’s entry immediately after 2000. China has surpassed the ASEAN-6 collectively in all SITC 751, SITC 752, and SITC 764 product categories. This chapter provides valuable insights into the dynamics of electronic production and trades within the Asian region and specifically in relation to the growing ascendancy of China as a global economic player and its impact on ASEAN countries.