1 00:00:00,270 --> 00:00:02,559 Speaker 1: You're listening to a CNA podcast 2 00:00:03,799 --> 00:00:07,840 Speaker 1: from zero COVID to zero quarantine. China will scrap its 3 00:00:07,849 --> 00:00:12,149 Speaker 1: five day mandatory quarantine for incoming travelers and will resume 4 00:00:12,180 --> 00:00:17,000 Speaker 1: issuing visas for Chinese traveling abroad. But in China, people 5 00:00:17,010 --> 00:00:21,920 Speaker 1: are rushing to submit their passport applications, COVID-19. Border controls 6 00:00:21,930 --> 00:00:23,450 Speaker 1: were eased just yesterday. 7 00:00:26,290 --> 00:00:29,739 Speaker 2: It's hard to believe. Three years ago, people were told 8 00:00:29,750 --> 00:00:33,560 Speaker 2: not to leave their homes a time when playgrounds sat empty, 9 00:00:33,569 --> 00:00:37,819 Speaker 2: signs warned Children to stay away when leisure air travel 10 00:00:37,830 --> 00:00:39,180 Speaker 2: was simply not an option. 11 00:00:39,790 --> 00:00:43,369 Speaker 2: China took things a step further though at one point 12 00:00:43,380 --> 00:00:48,490 Speaker 2: adopting a zero COVID policy, entire cities closed. It has 13 00:00:48,500 --> 00:00:52,040 Speaker 2: been six months now since Beijing made sweeping changes and 14 00:00:52,049 --> 00:00:56,000 Speaker 2: scrapped that approach. But some say the reopening has been 15 00:00:56,009 --> 00:01:00,919 Speaker 2: just as hard as the lockdowns. China correspondent Min Hong Kong, 16 00:01:00,930 --> 00:01:05,360 Speaker 2: correspondent Deborah Wang and Vietnam correspondent. No, joined me to 17 00:01:05,370 --> 00:01:06,220 Speaker 2: talk about that. 18 00:01:11,819 --> 00:01:14,059 Speaker 2: Hey guys, good to see you. Good to see you. 19 00:01:14,069 --> 00:01:16,440 Speaker 2: Good to see you. I wore a mask in the 20 00:01:16,449 --> 00:01:19,730 Speaker 2: taxi to get to this recording today. And to be honest, 21 00:01:19,739 --> 00:01:21,620 Speaker 2: I don't know when I'm going to let go of 22 00:01:21,629 --> 00:01:24,848 Speaker 2: that legacy of the pandemic. How about you guys has 23 00:01:24,860 --> 00:01:26,399 Speaker 2: life changed post COVID, Min. 24 00:01:26,919 --> 00:01:30,529 Speaker 2: Yes. Life has changed tremendously since China opened up from 25 00:01:30,540 --> 00:01:32,860 Speaker 2: zero COVID. I am not wearing a mask most of 26 00:01:32,870 --> 00:01:36,730 Speaker 2: the time now. But interestingly, I just attended the the 27 00:01:36,739 --> 00:01:40,559 Speaker 2: World Economic Forum in Tianjin and to attend the opening 28 00:01:40,569 --> 00:01:44,169 Speaker 2: plenary by Chinese Premier Li Qiang. Journalists were required to 29 00:01:44,180 --> 00:01:47,470 Speaker 2: take a PC R swap test 24 hours prior to 30 00:01:47,480 --> 00:01:50,989 Speaker 2: entering the venue and in my hotel room where I 31 00:01:51,000 --> 00:01:53,769 Speaker 2: am right now, I received a welcome gift of a 32 00:01:53,779 --> 00:01:55,790 Speaker 2: pack of rapid antigen test kit 33 00:01:55,860 --> 00:01:59,239 Speaker 2: as well. Um But other than that, life is pretty 34 00:01:59,250 --> 00:02:02,800 Speaker 2: much back to normal, almost like pre pandemic times. How 35 00:02:02,809 --> 00:02:04,750 Speaker 2: about you? Well, you know, Hong Kong used to be 36 00:02:04,760 --> 00:02:07,769 Speaker 2: such a convenient place to travel to from Southeast Asia. 37 00:02:07,779 --> 00:02:11,190 Speaker 2: So during the isolation, we immediately felt the difference. There 38 00:02:11,199 --> 00:02:14,500 Speaker 2: was a complete lack of crowds. It was quite easy honestly, 39 00:02:14,508 --> 00:02:16,550 Speaker 2: as a commuter to get a seat on the train 40 00:02:16,559 --> 00:02:18,500 Speaker 2: and you know, I didn't have to jostle with people 41 00:02:18,508 --> 00:02:21,830 Speaker 2: on the streets, especially at bay, you know, but since 42 00:02:21,839 --> 00:02:24,529 Speaker 2: the reopening, I can't get a seat on the train. 43 00:02:24,800 --> 00:02:27,109 Speaker 2: You can't walk in a straight line on any street 44 00:02:27,119 --> 00:02:30,190 Speaker 2: during lunch time. So the tours are definitely back. But 45 00:02:30,199 --> 00:02:33,460 Speaker 2: you know, like to Theresa with your masks, any traveler 46 00:02:33,470 --> 00:02:35,549 Speaker 2: coming to Hong Kong? They also ask me, do I 47 00:02:35,559 --> 00:02:37,130 Speaker 2: need to take a COVID test? Do I need to 48 00:02:37,139 --> 00:02:39,830 Speaker 2: show proof of vaccination? Now, you don't have to do 49 00:02:39,839 --> 00:02:42,220 Speaker 2: any of that anymore. But because Hong Kong was one 50 00:02:42,229 --> 00:02:45,240 Speaker 2: of the few places with all these requirements for such 51 00:02:45,250 --> 00:02:48,130 Speaker 2: a long time. It does feel pretty surreal even for 52 00:02:48,139 --> 00:02:51,258 Speaker 2: me that they are no longer needed. How about you to? 53 00:02:51,279 --> 00:02:53,619 Speaker 2: What about in Vietnam? Has anything changed? 54 00:02:54,130 --> 00:02:57,860 Speaker 2: I now carry hand sanitizer gel with me almost every 55 00:02:57,869 --> 00:03:00,669 Speaker 2: time I leave my house. So this is a habit 56 00:03:00,679 --> 00:03:03,880 Speaker 2: I picked up uh since the COVID-19 pandemic in Vietnam. 57 00:03:04,110 --> 00:03:07,929 Speaker 2: So the answer to your question, Teresa is yes. Uh 58 00:03:07,940 --> 00:03:11,899 Speaker 2: Life has changed in many ways. Post COVID and for 59 00:03:11,910 --> 00:03:15,339 Speaker 2: many people in Vietnam, they are still struggling to adjust 60 00:03:15,350 --> 00:03:18,899 Speaker 2: to the changes that COVID-19 brought to their lives. 61 00:03:19,809 --> 00:03:22,820 Speaker 2: Min Min, I remember talking to you in an earlier 62 00:03:22,830 --> 00:03:26,110 Speaker 2: episode about the lockdown in Shanghai. You said it was 63 00:03:26,119 --> 00:03:28,600 Speaker 2: like a shock, right? To suddenly be given your freedoms 64 00:03:28,610 --> 00:03:31,788 Speaker 2: back when the lockdown was lifted. China relaxed its COVID 65 00:03:31,800 --> 00:03:36,729 Speaker 2: restrictions nationwide in late December and then reopened its borders 66 00:03:36,740 --> 00:03:40,479 Speaker 2: in January of this year in those first few days 67 00:03:40,490 --> 00:03:44,080 Speaker 2: and first few weeks, how optimistic were people in China 68 00:03:44,089 --> 00:03:46,250 Speaker 2: that things were going to be back to how they 69 00:03:46,259 --> 00:03:46,880 Speaker 2: once were? 70 00:03:47,309 --> 00:03:49,779 Speaker 2: Yeah. If you were to just walk around the streets 71 00:03:49,789 --> 00:03:52,860 Speaker 2: of Shanghai right now, you wouldn't imagine that a year ago, 72 00:03:52,869 --> 00:03:56,139 Speaker 2: this city had just emerged from a brutal two months 73 00:03:56,149 --> 00:03:59,460 Speaker 2: lockdown where people were struggling to get food and businesses 74 00:03:59,470 --> 00:04:03,309 Speaker 2: were fighting for survival. We just celebrated the Dragon Boat 75 00:04:03,320 --> 00:04:08,199 Speaker 2: Festival holiday recently and the streets were absolutely packed with people. 76 00:04:08,210 --> 00:04:10,139 Speaker 2: We're talking about crowds that were so huge 77 00:04:10,210 --> 00:04:13,240 Speaker 2: that the police had to set up cordons at road 78 00:04:13,250 --> 00:04:17,579 Speaker 2: junctions to manage the human traffic. So tourism numbers are up. 79 00:04:17,589 --> 00:04:20,459 Speaker 2: Evidently people really want to be out and about after 80 00:04:20,470 --> 00:04:24,179 Speaker 2: a year of on and off lockdowns. But although tourism 81 00:04:24,190 --> 00:04:28,059 Speaker 2: trips in this recent holiday exceeded the numbers in 2019 82 00:04:28,070 --> 00:04:32,660 Speaker 2: by about 12% revenue though has dropped by about 5%. 83 00:04:33,109 --> 00:04:35,450 Speaker 2: This means is that more people are willing to go 84 00:04:35,459 --> 00:04:38,880 Speaker 2: out but they are spending less money than before. So 85 00:04:38,890 --> 00:04:43,660 Speaker 2: consumer sentiment still hasn't recovered fully. Oh, that's very interesting. 86 00:04:43,709 --> 00:04:46,690 Speaker 2: You talk about being out and about what about in 87 00:04:46,700 --> 00:04:50,399 Speaker 2: Macau Deb tourism huge for their economy and I'm sure 88 00:04:50,410 --> 00:04:53,279 Speaker 2: as soon as they heard about the mainland borders reopening 89 00:04:53,290 --> 00:04:55,940 Speaker 2: businesses were probably eager to make money again. 90 00:04:56,200 --> 00:04:58,070 Speaker 2: Yeah, they definitely eager to make money. You know, I 91 00:04:58,079 --> 00:05:00,369 Speaker 2: just want to give you a sense of how depending 92 00:05:00,380 --> 00:05:02,899 Speaker 2: the cow is on gaming and tourism. So it is 93 00:05:02,910 --> 00:05:05,730 Speaker 2: the only place on Chinese soil where gambling is legal. 94 00:05:05,738 --> 00:05:09,459 Speaker 2: And back then before the pandemic, it made about $36 95 00:05:09,720 --> 00:05:13,589 Speaker 2: billion in gaming revenue in 2019. So that accounts for 96 00:05:13,600 --> 00:05:16,970 Speaker 2: over half of the city's city's GDP. But you know, 97 00:05:16,980 --> 00:05:20,089 Speaker 2: when the pandemic hit the casino closures, they actually sent 98 00:05:20,100 --> 00:05:22,549 Speaker 2: revenue plunging by about 30%. 99 00:05:22,790 --> 00:05:26,130 Speaker 2: So definitely when the controls were lifted. It was such 100 00:05:26,140 --> 00:05:28,609 Speaker 2: a huge relief for operators. But you know, the pick 101 00:05:28,619 --> 00:05:30,708 Speaker 2: up like button in and experience is still going to 102 00:05:30,720 --> 00:05:33,750 Speaker 2: be really, really slow because there are immediate challenges such 103 00:05:33,760 --> 00:05:36,570 Speaker 2: as the lack of manpower for one hotels, they still 104 00:05:36,579 --> 00:05:39,760 Speaker 2: can't operate at full capacity because they simply don't have 105 00:05:39,769 --> 00:05:41,899 Speaker 2: enough staff to manage the tourist demand. 106 00:05:42,149 --> 00:05:46,409 Speaker 2: And also talking about associated industries such as the tour coaches, 107 00:05:46,420 --> 00:05:49,140 Speaker 2: they need to rehire drivers as well. So cross boundary 108 00:05:49,149 --> 00:05:52,609 Speaker 2: tours are not coming back at full capacity. And when 109 00:05:52,619 --> 00:05:55,229 Speaker 2: we look at the demographic of tourists, uh most of 110 00:05:55,238 --> 00:05:57,940 Speaker 2: the tourists are still from the mainland. Uh mainly because 111 00:05:57,950 --> 00:05:59,299 Speaker 2: flights to Macau, they are still 112 00:05:59,369 --> 00:06:02,790 Speaker 2: pretty limited. So visitors entering the city are only coming 113 00:06:02,799 --> 00:06:06,109 Speaker 2: through land border controls like Zhai or even from Hong 114 00:06:06,119 --> 00:06:11,868 Speaker 2: Kong and about 2400 kilometers away is Vietnam. But the 115 00:06:11,880 --> 00:06:16,118 Speaker 2: fallout from Beijing's zero COVID policy was also felt there, right? 116 00:06:16,859 --> 00:06:19,980 Speaker 2: It was, it was felt in Vietnam in some very 117 00:06:19,988 --> 00:06:24,670 Speaker 2: bad ways to Vietnam changed its strategy and started to 118 00:06:24,678 --> 00:06:28,500 Speaker 2: abandon its COVID-19 measures in March last year, 119 00:06:28,809 --> 00:06:32,760 Speaker 2: but China didn't do so until nine months later. And 120 00:06:32,769 --> 00:06:36,880 Speaker 2: with that nine months, it hurt many Vietnamese farmers and businesses. 121 00:06:37,178 --> 00:06:41,299 Speaker 2: It damaged Vietnam's exports to China. Although although Vietnam economy 122 00:06:41,309 --> 00:06:46,140 Speaker 2: rebounded strongly last year with about 8% in GDP growth, 123 00:06:46,149 --> 00:06:50,660 Speaker 2: recovery of many sectors and businesses was badly affected by 124 00:06:50,670 --> 00:06:54,739 Speaker 2: China's zero tolerance of COVID-19 outbreaks. Uh during that period, 125 00:06:55,290 --> 00:06:59,500 Speaker 2: Vietnamese farmers suffered some went bankrupt because they could not 126 00:06:59,510 --> 00:07:03,118 Speaker 2: sell their produce to China. And for Vietnam, China is 127 00:07:03,130 --> 00:07:07,570 Speaker 2: its biggest trading partner, second biggest export market and the 128 00:07:07,579 --> 00:07:11,079 Speaker 2: two countries are closely linked to uh in the regional 129 00:07:11,089 --> 00:07:15,739 Speaker 2: supply chain. So uh Vietnam's economic performance is closely linked 130 00:07:15,750 --> 00:07:17,559 Speaker 2: to the dynamics of China's economy. 131 00:07:18,079 --> 00:07:22,269 Speaker 2: All right. So China finally reopened its borders in January. 132 00:07:22,390 --> 00:07:25,690 Speaker 2: But instead of full speed ahead, hold on. Here comes 133 00:07:25,700 --> 00:07:29,799 Speaker 2: inflation with a capital. I what impact has global inflation 134 00:07:29,809 --> 00:07:32,679 Speaker 2: had on people who are looking for work? Min 135 00:07:33,440 --> 00:07:36,790 Speaker 2: well, China is kind of bucking the global trend here 136 00:07:36,799 --> 00:07:38,989 Speaker 2: while the rest of the world is grappling with high 137 00:07:39,000 --> 00:07:45,359 Speaker 2: inflation domestically, China's inflation remains relatively low and stable. Experts 138 00:07:45,369 --> 00:07:49,109 Speaker 2: say that that's because domestic spending is not really strong 139 00:07:49,119 --> 00:07:52,809 Speaker 2: enough to push inflation up. So that's actually a problem. 140 00:07:52,820 --> 00:07:56,489 Speaker 2: Global inflation has led to a shortfall in export demand 141 00:07:56,500 --> 00:07:59,149 Speaker 2: for Chinese goods. So they really need domestic 142 00:07:59,220 --> 00:08:02,390 Speaker 2: expanding to pick up to drive growth in the economy 143 00:08:02,399 --> 00:08:05,290 Speaker 2: because China can no longer rely on exports to be 144 00:08:05,299 --> 00:08:08,570 Speaker 2: the main driver of growth. So I recently went on 145 00:08:08,579 --> 00:08:11,510 Speaker 2: a reporting trip to Shenzhen which is a southern manufacturing 146 00:08:11,519 --> 00:08:15,089 Speaker 2: hub of China and at the long distance transport station 147 00:08:15,100 --> 00:08:18,140 Speaker 2: which is typically where the migrant workers would arrive at. 148 00:08:18,149 --> 00:08:21,070 Speaker 2: When they come to Shenzhen. I saw a whole row 149 00:08:21,079 --> 00:08:24,230 Speaker 2: of at least 50 men just sleeping in the streets 150 00:08:24,239 --> 00:08:24,929 Speaker 2: outside the city 151 00:08:25,000 --> 00:08:28,750 Speaker 2: station which also happens to be where an entire role 152 00:08:28,760 --> 00:08:32,049 Speaker 2: of recruitment agencies have set up shop to hire these 153 00:08:32,059 --> 00:08:34,890 Speaker 2: low wage migrant workers and these men, they are sleeping 154 00:08:34,900 --> 00:08:39,108 Speaker 2: there because demand for workers have not improved that much 155 00:08:39,119 --> 00:08:42,679 Speaker 2: after China opened up from zero COVID. So wages are 156 00:08:42,690 --> 00:08:45,189 Speaker 2: depressed and some of the men, they are just not 157 00:08:45,200 --> 00:08:48,130 Speaker 2: willing to work for such low rates. So they are waiting, 158 00:08:48,140 --> 00:08:50,710 Speaker 2: they're shopping around for the best opportunities. 159 00:08:52,880 --> 00:08:55,549 Speaker 2: I have already been here for more than two months. 160 00:08:55,559 --> 00:08:58,819 Speaker 2: The market is no good. Now many people can't find 161 00:08:58,830 --> 00:09:02,359 Speaker 2: jobs during the pandemic. It was a little better. At 162 00:09:02,409 --> 00:09:06,049 Speaker 2: that time, there were still positions for anti pandemic, security 163 00:09:06,059 --> 00:09:09,900 Speaker 2: guards and so on. Now there are no such jobs available. 164 00:09:10,619 --> 00:09:13,460 Speaker 2: That sight of so many men just waiting, right? 165 00:09:14,109 --> 00:09:17,239 Speaker 2: Ok. For those from the mainland with money to spend 166 00:09:17,250 --> 00:09:20,289 Speaker 2: the glittering lights of Macau is often where they go, 167 00:09:20,419 --> 00:09:24,089 Speaker 2: some head to Hong Kong Deb have tourist dollars returned 168 00:09:24,099 --> 00:09:27,099 Speaker 2: or has COVID changed people's travel habits. 169 00:09:27,679 --> 00:09:30,919 Speaker 2: Well, the tourist dollar hasn't quite returned just yet. Partly 170 00:09:30,929 --> 00:09:34,320 Speaker 2: also because Chinese visitor arrivals are only at 36% of 171 00:09:34,330 --> 00:09:38,520 Speaker 2: pre pandemic levels. And another interesting reason is the shift 172 00:09:38,530 --> 00:09:41,209 Speaker 2: in travel itineraries. So Macau and Hong Kong used to 173 00:09:41,219 --> 00:09:44,349 Speaker 2: be go to places for luxury shopping. It was pretty 174 00:09:44,359 --> 00:09:48,150 Speaker 2: common to see mainland Chinese shoppers drag around luggages along 175 00:09:48,460 --> 00:09:50,869 Speaker 2: bay along any of the casinos, you know, and they 176 00:09:50,880 --> 00:09:53,289 Speaker 2: will fill up an entire days worth of shopping and 177 00:09:53,299 --> 00:09:54,400 Speaker 2: all these luggage. 178 00:09:54,593 --> 00:09:56,692 Speaker 2: You know, this time around all these shops, they are 179 00:09:56,703 --> 00:10:00,013 Speaker 2: much quieter for Macau specifically. I was in Macau two 180 00:10:00,023 --> 00:10:03,682 Speaker 2: months ago for a work trip and the casino shops 181 00:10:03,692 --> 00:10:07,072 Speaker 2: where you see Louis Vuitton, you see Hermes and they 182 00:10:07,083 --> 00:10:10,692 Speaker 2: were all pretty quiet. The crowds in fact were flocking 183 00:10:10,703 --> 00:10:13,692 Speaker 2: to Taipei Village and that's where the street food markets were. 184 00:10:13,703 --> 00:10:16,552 Speaker 2: So that was pretty interesting to see. And for Hong 185 00:10:16,562 --> 00:10:19,652 Speaker 2: Kong and Macau, both cities are seeing more independent travelers 186 00:10:19,663 --> 00:10:21,421 Speaker 2: instead who were more interested in 187 00:10:21,505 --> 00:10:25,934 Speaker 2: local experiences. Basically things that you can't find in mainland China. 188 00:10:26,106 --> 00:10:29,166 Speaker 2: So people are going for a cultural festivals at the 189 00:10:29,176 --> 00:10:32,116 Speaker 2: Dragon Boat Festival that took place just last weekend. And 190 00:10:32,125 --> 00:10:34,745 Speaker 2: we also had the Tao Ban festival quite an iconic 191 00:10:34,755 --> 00:10:37,885 Speaker 2: festival sometime in Maine. They're filling up on street food 192 00:10:37,895 --> 00:10:40,555 Speaker 2: as well. So they are also joining walking tours that 193 00:10:40,565 --> 00:10:44,195 Speaker 2: takes them through a quieter neighborhoods that were previously not 194 00:10:44,205 --> 00:10:46,955 Speaker 2: on the tourist radar. I joined one tour just to 195 00:10:46,966 --> 00:10:48,335 Speaker 2: experience how it was like. And 196 00:10:48,549 --> 00:10:51,659 Speaker 2: the tour guide brought me to a preserve bean shop 197 00:10:51,669 --> 00:10:55,369 Speaker 2: that was 118 years old. It's owned by fourth generation 198 00:10:55,380 --> 00:10:58,419 Speaker 2: owners right now and it's located in Jordan in a 199 00:10:58,510 --> 00:11:02,450 Speaker 2: pretty residential neighborhood somewhere in Kowloon. So this shop used 200 00:11:02,460 --> 00:11:05,358 Speaker 2: to be quite a well kept secret only among locals. 201 00:11:05,369 --> 00:11:05,739 Speaker 2: But since 202 00:11:05,840 --> 00:11:08,640 Speaker 2: it's become a pit stop on all these guided tours, 203 00:11:08,650 --> 00:11:11,419 Speaker 2: tourists have been flocking there. And you know, four gen 204 00:11:11,429 --> 00:11:15,200 Speaker 2: owners have actually tweaked some recipes to cater to modern palates. 205 00:11:15,359 --> 00:11:18,559 Speaker 2: And one very interesting recipe that I found was this 206 00:11:18,570 --> 00:11:21,890 Speaker 2: carbonara sauce made entirely from preserved bean. So I thought 207 00:11:21,900 --> 00:11:23,049 Speaker 2: that was pretty interesting. 208 00:11:25,640 --> 00:11:29,419 Speaker 2: We run a family business when tourists come in, they 209 00:11:29,429 --> 00:11:32,469 Speaker 2: tend to chat with us. This also makes us different 210 00:11:32,479 --> 00:11:35,390 Speaker 2: from other shops in the malls where the staff don't 211 00:11:35,400 --> 00:11:38,429 Speaker 2: have as good a relationship with the customers as we do. 212 00:11:38,650 --> 00:11:41,989 Speaker 2: We want our visitors to feel at home. This feeling 213 00:11:42,000 --> 00:11:44,739 Speaker 2: is more important when it comes to the development of 214 00:11:44,750 --> 00:11:45,340 Speaker 2: the city. 215 00:11:46,140 --> 00:11:49,880 Speaker 2: Wow, carbonara sauce from preserved bean curd. I would actually 216 00:11:49,890 --> 00:11:53,690 Speaker 2: love to try that. Alright. Stay with us. Coming up 217 00:11:53,700 --> 00:11:57,679 Speaker 2: from pasta to produce Vietnam is home to tens of 218 00:11:57,690 --> 00:12:03,228 Speaker 2: thousands of farmers tong tells us why they're celebrating after this. 219 00:12:09,960 --> 00:12:13,159 Speaker 2: Are you looking for ways to make your money work harder, 220 00:12:13,169 --> 00:12:18,400 Speaker 2: tips on saving investing or retiring early perhaps? Or advice 221 00:12:18,409 --> 00:12:21,909 Speaker 2: on big ticket decisions like buying a house or owning 222 00:12:21,919 --> 00:12:25,789 Speaker 2: a car? I'm Andrea Hing, host of CN A's Top 223 00:12:25,799 --> 00:12:29,010 Speaker 2: personal finance podcast, money talks and the 224 00:12:29,114 --> 00:12:32,025 Speaker 2: these are some of the things we find out for you. 225 00:12:32,325 --> 00:12:35,724 Speaker 2: Each week I get a guest to share personal stories 226 00:12:35,734 --> 00:12:39,015 Speaker 2: and answer burning questions that help you make sense of 227 00:12:39,025 --> 00:12:42,905 Speaker 2: the latest financial trends. Go check out the complete money 228 00:12:42,914 --> 00:12:47,015 Speaker 2: talks playlist on the CN A app, Spotify, Google or 229 00:12:47,025 --> 00:12:48,184 Speaker 2: Apple podcasts. 230 00:12:56,710 --> 00:13:00,809 Speaker 2: Welcome back to I love fruits. One of my favorites 231 00:13:00,820 --> 00:13:05,500 Speaker 2: is and I know Vietnam exports its sweetest and juiciest 232 00:13:05,510 --> 00:13:09,369 Speaker 2: to China. How have farmers harvest been this year? What 233 00:13:09,380 --> 00:13:12,479 Speaker 2: did they tell you? We are now in peak season for? 234 00:13:12,849 --> 00:13:17,479 Speaker 2: And I visited Vietnam's biggest plantation in northern Basang Province, 235 00:13:17,760 --> 00:13:20,789 Speaker 2: an area about a three hour drive from the capital 236 00:13:20,799 --> 00:13:21,319 Speaker 2: Hanoi 237 00:13:21,609 --> 00:13:25,218 Speaker 2: farmers there told me the harvest this year is good 238 00:13:25,229 --> 00:13:28,099 Speaker 2: and it is better than the last harvest last year. 239 00:13:28,400 --> 00:13:32,570 Speaker 2: But what really make them happy is Vietnam's land border 240 00:13:32,580 --> 00:13:37,400 Speaker 2: with China is fully open this year without any COVID-19 restrictions. 241 00:13:37,969 --> 00:13:41,280 Speaker 2: And it means that harvest can be exported to China 242 00:13:41,289 --> 00:13:45,450 Speaker 2: this year much easier when China's 0, COVID-19 was still 243 00:13:45,460 --> 00:13:49,520 Speaker 2: placed compared to last year. It also means that Vietnamese 244 00:13:49,789 --> 00:13:53,640 Speaker 2: farmers there can sell their produce at higher prices. 245 00:13:54,130 --> 00:13:58,440 Speaker 2: China is the biggest market that takes up to 70 246 00:13:58,450 --> 00:14:02,919 Speaker 2: to 80% of Vietnam's prices now range from half a 247 00:14:02,929 --> 00:14:07,590 Speaker 2: dollar to a dollar per kilogram of depending on the quality. 248 00:14:07,739 --> 00:14:09,260 Speaker 2: And many say that the 249 00:14:09,364 --> 00:14:12,674 Speaker 2: price at that range does help them bring in a 250 00:14:12,684 --> 00:14:16,544 Speaker 2: decent economic return. When I was there, Chinese traders are 251 00:14:16,554 --> 00:14:19,974 Speaker 2: back to Vietnam. They are busily working with their Vietnamese 252 00:14:19,984 --> 00:14:25,015 Speaker 2: partners in several towns located in Vietnam's Alai region to 253 00:14:25,025 --> 00:14:26,034 Speaker 2: buy the produce. 254 00:14:26,469 --> 00:14:29,830 Speaker 2: And in this town, shops along the main road are 255 00:14:29,840 --> 00:14:35,619 Speaker 2: turned into temporary trading posts. So farmers carry their on 256 00:14:35,630 --> 00:14:39,179 Speaker 2: uh small scooters to the market of this guy every 257 00:14:39,190 --> 00:14:45,039 Speaker 2: morning each farmer can carry about 200 kg of on 258 00:14:45,320 --> 00:14:48,630 Speaker 2: a and they drive up and down the road where 259 00:14:48,640 --> 00:14:53,140 Speaker 2: buyers was standing waiting in to offer prices based on 260 00:14:53,150 --> 00:14:54,840 Speaker 2: visual evaluations of 261 00:14:55,840 --> 00:14:58,130 Speaker 2: the market itself would start very early at five in 262 00:14:58,140 --> 00:15:00,969 Speaker 2: the morning and it finished at around 8 a.m. 263 00:15:01,250 --> 00:15:06,950 Speaker 2: The after that is packaged and loaded onto containers and 264 00:15:06,960 --> 00:15:10,820 Speaker 2: Chuck heading to Vietnam's border with China. Did you get 265 00:15:10,830 --> 00:15:13,919 Speaker 2: to try any? Oh, I tried loads a bit and 266 00:15:13,969 --> 00:15:17,530 Speaker 2: a lot. I had a blast and I had so 267 00:15:17,580 --> 00:15:21,150 Speaker 2: many in the name of research, of course. Ok, so Tong, 268 00:15:21,159 --> 00:15:26,119 Speaker 2: besides what about other food products that are destined for China? 269 00:15:26,369 --> 00:15:29,559 Speaker 2: How significant are those exports to Vietnam's economy? 270 00:15:29,789 --> 00:15:34,739 Speaker 2: Well, not everyone in Vietnam is benefiting from China's reopening 271 00:15:34,750 --> 00:15:38,479 Speaker 2: the same way as the the farmers are prior to 272 00:15:38,489 --> 00:15:41,869 Speaker 2: the uh the reopening. There was huge expectations in Vietnam 273 00:15:41,880 --> 00:15:45,700 Speaker 2: on the possible impact of China's reopening in the way 274 00:15:45,710 --> 00:15:51,080 Speaker 2: that it would help boost Vietnam's tourism trade and economic growth. 275 00:15:51,090 --> 00:15:54,940 Speaker 2: But so far the impact has not been what was expected, 276 00:15:54,950 --> 00:15:57,340 Speaker 2: less significant than expected. Rather 277 00:15:57,799 --> 00:16:03,169 Speaker 2: as China's economic recovery is spluttering factory activity. There has 278 00:16:03,179 --> 00:16:07,049 Speaker 2: slumped to its weakest level since China ended its zero 279 00:16:07,059 --> 00:16:10,909 Speaker 2: COVID policy, Chinese tourists are back in Vietnam but only 280 00:16:10,919 --> 00:16:15,169 Speaker 2: at around 35% of its pre-covid level. 281 00:16:15,770 --> 00:16:19,940 Speaker 2: Vietnam, China bilateral trade declined year on year. Some major 282 00:16:19,950 --> 00:16:25,369 Speaker 2: declines were seen in Vietnam's export in smartphones, electronics, fisheries, 283 00:16:25,380 --> 00:16:28,770 Speaker 2: textile to China. In terms of fisheries, the export to 284 00:16:28,780 --> 00:16:32,299 Speaker 2: China have declined for about 30% year on year. 285 00:16:32,919 --> 00:16:35,789 Speaker 2: But among the biggest winners in Vietnam are fruits and 286 00:16:35,799 --> 00:16:40,650 Speaker 2: vegetable exporters with export value to China grew exponentially in 287 00:16:40,659 --> 00:16:44,270 Speaker 2: the last six months. It's up about 50% year on 288 00:16:44,280 --> 00:16:48,330 Speaker 2: year and that increase is mainly thanks to export to China, 289 00:16:48,340 --> 00:16:52,950 Speaker 2: especially in wheat produce like Durian or dragon fruit. 290 00:16:53,270 --> 00:16:57,159 Speaker 2: Min Min. I want to talk about what's next. Besides inflation, 291 00:16:57,169 --> 00:17:01,070 Speaker 2: Sino US, tensions are really not helping manufacturers who are 292 00:17:01,080 --> 00:17:04,439 Speaker 2: trying to get back on their feet. How optimistic are 293 00:17:04,449 --> 00:17:07,270 Speaker 2: they and what options do they have now? 294 00:17:07,920 --> 00:17:11,369 Speaker 2: So people in the business community that I've spoken to 295 00:17:11,380 --> 00:17:15,639 Speaker 2: say that China's biggest incentive, it's still its large domestic 296 00:17:15,650 --> 00:17:19,459 Speaker 2: market size, but that is increasingly being overshadowed by geopolitical 297 00:17:19,469 --> 00:17:22,689 Speaker 2: risks and that's increasing the cost of doing business as 298 00:17:22,699 --> 00:17:25,959 Speaker 2: well as the compliance costs because we know the US 299 00:17:25,969 --> 00:17:29,040 Speaker 2: and its allies have been imposing these sanctions on Chinese 300 00:17:29,050 --> 00:17:32,409 Speaker 2: companies and export controls on China. And in turn, China 301 00:17:32,420 --> 00:17:35,708 Speaker 2: has hit back by cracking down on some foreign companies 302 00:17:35,776 --> 00:17:38,546 Speaker 2: including with rates on due diligence firms. And recently a 303 00:17:38,557 --> 00:17:43,477 Speaker 2: ban on us chipmaker micro from participating in key infrastructure projects. 304 00:17:43,557 --> 00:17:47,866 Speaker 2: These actions were taken because of concerns over espionage and 305 00:17:47,876 --> 00:17:52,026 Speaker 2: network security and national security. And China just passed a 306 00:17:52,036 --> 00:17:55,107 Speaker 2: new Foreign relations law that will kick in this July 307 00:17:55,116 --> 00:17:58,146 Speaker 2: as well to give it the legal backing to take 308 00:17:58,156 --> 00:18:02,696 Speaker 2: countermeasures against foreign sanctions. So all of these really add 309 00:18:02,707 --> 00:18:03,567 Speaker 2: to the the 310 00:18:03,634 --> 00:18:07,384 Speaker 2: the certainty of the business environment, making businesses think twice 311 00:18:07,394 --> 00:18:10,323 Speaker 2: about investing here. And the government is aware of that. 312 00:18:10,333 --> 00:18:13,042 Speaker 2: We heard Chinese Premier Li Qiang a few days ago 313 00:18:13,053 --> 00:18:16,953 Speaker 2: sought to seeking to reassure the international community at the 314 00:18:16,963 --> 00:18:19,774 Speaker 2: World Economic Forum here in Tianjin. He said that China's 315 00:18:19,784 --> 00:18:22,803 Speaker 2: growth is on track that it is committed to open 316 00:18:22,813 --> 00:18:26,173 Speaker 2: its doors to investments and that countries should not decouple 317 00:18:26,183 --> 00:18:30,713 Speaker 2: from China and in a private dialogue with entrepreneurs, he 318 00:18:30,723 --> 00:18:31,423 Speaker 2: also allayed 319 00:18:31,490 --> 00:18:34,921 Speaker 2: their fears by mentioning that security is a precondition for 320 00:18:34,931 --> 00:18:38,211 Speaker 2: development and that China will not abuse its so called 321 00:18:38,220 --> 00:18:42,940 Speaker 2: security reviews, which she says will only target illegal behaviors 322 00:18:42,951 --> 00:18:47,129 Speaker 2: by specific companies. And for places like Hong Kong and 323 00:18:47,140 --> 00:18:50,879 Speaker 2: Macau Deb do businesses that you spoke to feel hopeful 324 00:18:50,890 --> 00:18:54,430 Speaker 2: that they can adapt to this new post COVID reality 325 00:18:54,630 --> 00:18:57,931 Speaker 2: or businesses are generally positive mainly because the benchmark was 326 00:18:57,941 --> 00:18:59,171 Speaker 2: so low to begin with 327 00:18:59,348 --> 00:19:02,046 Speaker 2: the last two years, right? And economists I spoke to 328 00:19:02,057 --> 00:19:04,887 Speaker 2: told me that people are slowly coming back to investor 329 00:19:04,897 --> 00:19:09,588 Speaker 2: confidence is returning. We've seen relocating firms relocation from sorry. 330 00:19:09,677 --> 00:19:13,088 Speaker 2: They have seen a spike in queries from companies that 331 00:19:13,098 --> 00:19:17,157 Speaker 2: have presence in Hong Kong employees are returning as well. 332 00:19:17,167 --> 00:19:20,328 Speaker 2: So traditional shops, for instance, when we're talking about uh 333 00:19:20,338 --> 00:19:23,177 Speaker 2: tourist offerings and they are now all the rage on 334 00:19:23,186 --> 00:19:25,936 Speaker 2: all these guided tours and they've also started to expand 335 00:19:25,946 --> 00:19:27,137 Speaker 2: more immersive offering. 336 00:19:27,694 --> 00:19:31,915 Speaker 2: So in it's an island of Hong Kong island, for instance, 337 00:19:32,074 --> 00:19:36,125 Speaker 2: a place that's famous for the iconic on that's Buns 338 00:19:36,135 --> 00:19:38,974 Speaker 2: in English. It's an old school bakery that has launched 339 00:19:38,984 --> 00:19:41,165 Speaker 2: a workshops for visitors. So you don't just go there 340 00:19:41,175 --> 00:19:43,135 Speaker 2: to eat. Now you go there to learn how to 341 00:19:43,145 --> 00:19:45,844 Speaker 2: make stuff for yourself to eat. And the idea is 342 00:19:45,854 --> 00:19:49,744 Speaker 2: to retain this interest in local experiences. On the metro level, 343 00:19:49,755 --> 00:19:52,655 Speaker 2: Hong Kong and Macau are going really big on mice activities. 344 00:19:52,665 --> 00:19:54,994 Speaker 2: So a large volume of business travelers are 345 00:19:55,061 --> 00:19:57,442 Speaker 2: are returning. And the Hong Kong Tourism Board told me 346 00:19:57,452 --> 00:20:00,831 Speaker 2: that that in itself has helped boost a lot of 347 00:20:00,842 --> 00:20:04,121 Speaker 2: spending because the business travelers, they typically tend to stay 348 00:20:04,131 --> 00:20:06,962 Speaker 2: in a city a little longer than regular tourists. So 349 00:20:06,972 --> 00:20:09,791 Speaker 2: there's a concerted effort to draw people back to malls, 350 00:20:09,802 --> 00:20:15,160 Speaker 2: conventional tourist hotspots like ocean park and fine dining restaurants. 351 00:20:15,171 --> 00:20:17,472 Speaker 2: And you know, the government has been giving out tourist 352 00:20:17,482 --> 00:20:20,120 Speaker 2: vouchers to channel some traffic there. So all in all 353 00:20:20,131 --> 00:20:22,852 Speaker 2: I think business sentiment is growing. Well, 354 00:20:23,449 --> 00:20:27,359 Speaker 2: yeah, it's amazing just how reminded we are because of COVID, 355 00:20:27,369 --> 00:20:31,119 Speaker 2: of how connected the the global economy is. Thank you 356 00:20:31,130 --> 00:20:33,438 Speaker 2: so much guys. It was a pleasure, Deb and Tong. 357 00:20:33,869 --> 00:20:37,859 Speaker 2: Thank you. Thank you so much. The TV version of 358 00:20:37,869 --> 00:20:41,050 Speaker 2: CN A correspondent airs on CN A every Wednesday at 359 00:20:41,060 --> 00:20:44,300 Speaker 2: 9:30 p.m. catch up with them any time on CN 360 00:20:44,310 --> 00:20:47,958 Speaker 2: A dot Asia. The team behind this episode is CYA 361 00:20:48,160 --> 00:20:52,579 Speaker 2: Clara Ong, Christina Robert and Me, Theresa Tang until next time.