Vietnam’s exports have increased significantly after Xi Jinping’s Zero-COVID policy imposed blockades in Shenzhen and Shanghai this spring.
According to Vietnam’s Bureau of Statistics (GSO), Vietnam’s exports reached a record $ 34.7 billion in March. By comparison, according to the Shenzhen Census Bureau, Shenzhen exports were only $ 17.8 billion, down 14 percent from last year.
Vietnam’s GSO also reported a record $ 88.58 billion in total exports in the first quarter of 2022. That’s about 46 percent higher than Shenzhen’s total exports in the first quarter.
In particular, electronic products such as mobile phones, computers and components accounted for $ 28.1 billion, Vietnam’s largest export category, accounting for 32% of Vietnam’s total exports in the first quarter.
Shenzhen is one of the most important innovation and manufacturing centers in China and is consistently ranked third in tax revenue among all cities in China. According to a March 24 press release by the Shenzhen Municipal Government, it also contributed 2.6% to China’s gross domestic product (GDP) in 2021.
In 2018, after the US-China trade war, Vietnam surpassed Shenzhen for the first time in 30 years, and the gap between the two has widened since then.
Leading technology companies such as Samsung Electronics, LG Corp., Intel and Apple have begun investing in alternative manufacturing sites in countries such as Vietnam and India, and have slowly relocated their production lines from China.
As a result, exports of products in several major categories have declined significantly in China.
In the first four months of 2022, exports of mobile phones, appliances, fertilizers and steel fell 14.2 percent, 6.8 percent, 35.8 percent and 29.2 percent, respectively, according to Chinese Customs statistics.
The extreme Zero-COVID policy and its subsequent blockade further exacerbated the economic situation. According to the Shenzhen Treasury Department, Shenzhen’s financial revenues in April fell 44 percent compared to the same month last year.