Asia-Pacific Region Sees Economic Shifts and Development in Late 1998

Strategic Insights -

As the world grappled with the aftermath of the Asian financial crisis, the Asia-Pacific region witnessed significant economic shifts and developments in late 1998. South Korea, once a net borrower, expected to emerge as a creditor country by the end of 1999, with a projected current account surplus of $20 billion. In contrast, Indonesia's exports declined by 4.32% in 1998 due to the country's struggling banking sector and economic upheaval. Meanwhile, Vietnam licensed 36 new foreign-invested projects in Hanoi, with a combined investment capital of $383.2 million, further solidifying its position as an attractive destination for foreign investment. Additionally, the road transport link between India and Pakistan was set to reopen in January 1999, with a bus service connecting New Delhi and Lahore, marking a significant step towards regional economic integration.

Key Takeaways:

  • South Korea expected to become a creditor country by the end of 1999, with a projected current account surplus of $20 billion.
  • Indonesia's exports declined by 4.32% in 1998 due to the country's struggling banking sector and economic upheaval.
  • Vietnam licensed 36 new foreign-invested projects in Hanoi, with a combined investment capital of $383.2 million.
  • The road transport link between India and Pakistan was set to reopen in January 1999, with a bus service connecting New Delhi and Lahore.
  • Southwestern (Southbell) of the US planned to acquire at least 15% stake in Philippine Long Distance Telephone Company (PLDT).
  • Visteon Automotive Systems, the world's second-largest auto components supplier, would increase investment in China and continue its successful cooperation with China's automotive industry.
  • Korea lifted import restrictions on 32 Japanese products, including jeeps, camcorders, roll film cameras, and analogue wristwatches.
  • Vietnam implemented the Value Added Tax (VAT) from January 1, 1999.
  • Amtrex Appliances, a subsidiary of India's Lalbhai group, announced a joint venture with Japanese consumer giant Hitachi.
  • Telecommunications company Powertel Ltd started construction of a multi-million dollar fibre optic infrastructure linking Sydney, Melbourne, and Brisbane.

Statistics:

  • South Korea's current account surplus projection: $20 billion
  • Indonesia's 1998 export decline: 4.32%
  • Vietnam's licensed foreign-invested projects: 36
  • Combined investment capital for Vietnam's licensed projects: $383.2 million
  • Visteon Automotive Systems' investment in China: $200 million
  • Korea's lifted import restrictions: 32 Japanese products
  • Vietnam's VAT rate: 10%
  • Amtrex Appliances' joint venture stake: 32.5% (Hitachi)
  • Powertel Ltd's fibre optic infrastructure project cost: A$200 million

Sources:

  • Asia Pulse (http://www.asiapulse.com)
  • COMTEX (http://www.comtexnews.com)
  • The Commerce, Industry and Energy Ministry (Korea)
  • The Tax Department (Vietnam)
  • Amtrex Appliances (India)
  • Powertel Ltd (Australia)