Asia's Economic Landscape: Key Developments and Statistics

Strategic Insights -

Business in Asia on Nov 9, 2005 reported significant economic developments in various Asian countries. The United States and China signed a three-year textile trade agreement, while steel giants Baoshan Iron and Steel Co., Ltd., Japan's Nippon Steel, and Europe's Arcelor joined forces to produce automotive sheet in Shanghai. National Australia Bank posted a 30.1% surge in annual net profit, while Shanghai committed to investing US$6 billion in the panel display industry. Bureaucratic red tape was estimated to be costing the Australian economy US$63 billion annually. Other notable developments included the operation of Vietnam's largest steel coating and painting plant, SK Telecom's investment in a Vietnam cell phone venture, and JR West's boost in safety-related spending.

Key Takeaways:

  • The United States and China signed a three-year textile trade agreement, imposing quotas on Chinese textile products and increasing imports of major textile and apparel products from China by 10-15% in 2006, 12.5-16% in 2007, and 15-17% in 2008.
  • Baoshan Iron and Steel Co., Ltd., Japan's Nippon Steel, and Europe's Arcelor established a joint venture to produce automotive sheet in Shanghai, investing US$803.8 million and holding a 50-38-12% stake respectively.
  • National Australia Bank's annual net profit surged 30.1% to A$4.13 billion (US$3 billion) for 2004/05, with key measures such as cash earnings and net interest margin showing mixed results.
  • Shanghai committed to investing US$6 billion in the panel display industry over the next five years, with the Panel Display Industry Base covering an area of 2.2 square kilometres.
  • Bureaucratic red tape was estimated to cost the Australian economy US$63 billion annually, putting future economic growth at risk.
  • Vietnam's largest steel coating and painting plant, built by BlueScope Steel Vietnam Limited, began operation in early December, with an annual capacity of 125,000 tonnes and expected market share of 16% in its first year.
  • SK Telecom invested up to US$280 million in its Vietnam cell phone venture, aiming for 4 million subscribers by 2008 and US$350 million in sales.
  • JR West boosted its spending on facility repairs and safety improvements by US$157.8 million in the current year, with 8.5 billion yen dedicated to repairing railroad facilities and 10 billion yen for improving safety.

Statistics:

  • A total of 21 types of clothing and textiles were placed under import restrictions by the US-China textile trade agreement.
  • The agreement provides for a progressive increase in imports of major textile and apparel products from China: 10-15% in 2006, 12.5-16% in 2007, and 15-17% in 2008.
  • Baoshan Iron and Steel Co., Ltd. holds a 50% stake in the Baosteel Nippon Steel Automotive Sheet Co., Ltd. joint venture, with Nippon Steel and Arcelor holding 38% and 12% respectively.
  • National Australia Bank's net interest margin decreased 15 basis points to 2.20% over the year, but lifted one basis point in the second half.
  • Shanghai's Panel Display Industry Base covers an area of 2.2 square kilometres.
  • Bureaucratic red tape is estimated to cost the Australian economy US$63 billion annually.
  • BlueScope Steel Vietnam Limited's steel coating and painting plant has an annual capacity of 125,000 tonnes.
  • SK Telecom aims for 4 million subscribers by 2008 and US$350 million in sales.
  • JR West boosted its spending on facility repairs and safety improvements by 18.5 billion yen (US$157.8 million).

Sources:

  • Business in Asia, November 9, 2005
  • Asia Pulse (http://www.asiapulse.com)
  • AAP (Australian Associated Press Pty Ltd)
  • LKBN ANTARA (Indonesia)
  • CNA (Central News Agency, Taiwan)
  • IRNA (Islamic Republic News Agency, Iran)
  • Nikkei (Nihon Keizai Shimbun Inc, Japan)
  • ONA (Oman News Agency, Oman)
  • Pacnews (Pacific Islands News Association)
  • Pajhwok (Pajhwok Afghan News, Afghanistan)
  • PNA (Philippines News Agency)
  • PPI (Pakistan Press International)
  • PTI (The Press Trust of India Ltd, India)
  • TCA (Times of Central Asia, Central Asia)
  • UNB (United News of Bangladesh, Bangladesh)
  • UzReport (UzReport.com, Uzbekistan)
  • VNA (Vietnam News Agency, Vietnam)
  • XIC (Xinhua Information Centre, China)
  • Yonhap (Yonhap News Agency, Korea)