JAKARTA — A year after China began phasing out its infamous one child policy, global sports and fashion brands are hoping to sell more babywear and childrenswear in the world’s second biggest economy. “It seems reasonable to assume that now people are allowed to have more than one child, many will take advantage of the opportunity,” said a spokesperson for Adidas, a German sportswear giant perhaps best known for the three stripe logo that has long adorned the shirts and boots of the world’s best football players. In a recent survey of the Chinese childrenswear market, business research group Euromonitor forecast a 62.5% sales volume increase in babywear up to 2020, with a 38.3% increase in childrenswear projected for the same period. An Adidas spokesman told the Nikkei Asian Review that “the market for kids’ sports products and apparel continues to go from strength to strength in China and we fully expect this trend to continue.”
HO CHI MINH CITY– With average per capital annual incomes of just over US$1,000, Vietnam is officially a lower-middle income country. In Hanoi, the seat of government and commercial capital Ho Chi Minh City – still popularly known as Saigon – property prices are on an upward curve with new buildings sprouting-up faster than new growth in Vietnam’s lush tropical rainforests. But Vietnam must also address rising inflation, forecast by Standard Chartered Bank at 19.7 percent in December and with an 11.3 percent rise forecast for 2012. The Dong is expected to continue to depreciate throughout the year, given Vietnam’s US$8 billion current account deficit and low foreign currency reserves. With the State Bank of Vietnam attempting to sop up liquidity, tight monetary policy is starting to put pressure on the banking sector, with the result that some small banks have raised interest rates as high as 18 percent despite a request from the bank to keep it to 14 percent.