USA dethrones China as ASEAN's leading export destination

 

According to the latest Asian countries import export data, the USA has emerged as the biggest trading partner with ASEAN (Association of Southeast Asian Nations). These include Burma, Brunei, Philippines, Vietnam, Singapore, Malaysia, Indonesia, Thailand, Cambodia, Laos and Brunei. 

As per the latest US import data of 2024, the imports from ASEAN countries were estimated to be $67 billion exceeding Chinese imports which were $55 billion in the first quarter of 2024. USA was the leading destination for ASEAN countries semiconductors and electrical equipment.  

Machine parts, furniture, rubber items and computers were the key imports of the USA from ASEAN nations. Among ASEAN nations, Malaysia has shown rapid growth in exports to the United States with an increase of 8%. On the other hand, Chinese exports to Malaysia declined to 3.2%. 

US bill of lading database suggests that around $35 billion worth of imports from Malaysia recorded in FY 2023. These were mainly electronics, electrical equipment, semiconductor devices, clothing articles, furniture, and medical instruments were the most demanded Malaysian goods in the US market. 

Vietnam was another ASEAN nation with rapid exports growth to the USA this year. Vietnam export data reflects its exports grew up to 24% in 2024 and estimated to be $25 billion. Electronics, telephones, textiles and footwear were  USA's major imports from Vietnam. Over the years, Vietnam and the USA ties strengthened. The USA is Vietnam's biggest export trading partner representing 28% of Vietnam’s overall exports.

Whereas, China was responsible for 14% share of Vietnam exports. Vietnam’s cheap labour, quality manufacturing, organized logistics and supply chain structure has prompted MNCs to consider it as a better alternative to China. Thailand and Singapore were other fastest growing markets for imports from the USA. 

During the first quarter of 2024, the USA imports from Thailand were $12.5 billion followed by Singapore which was $12 billion. Whereas, Thailand’s exports to China declined significantly by 5.2%. Whereas, exports to the USA were mainly agricultural products and automobiles items. 

The USA is slowly making its presence felt in the ASEAn countries, giving a stiff challenge to China. According to global import export data providers, China and Hong Kong exports combined to China and Hong Kong were $68 billion in the first quarter of 2024.

The USA is just short of these numbers. Compared to $86 billion exports of China and Hong Kong in 2021. China's dominance is slightly overshadowed by the USA. These figures are depicting that ASEAN countries are expanding their market and stop relying on China. 

Whereas per US export data, ASEAN nations imports from the United States were recorded to be $87 billion in FY 2023. The leading imports include electronics equipment, petroleum products, gold and scrap metals.

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