Japan's chip supplier surprise and Vietnam's educational returns

Hello everyone, this is Cissy from Hong Kong. I just got back to the city from mainland China, where I spent more than a week celebrating the Lunar New Year.

Due to COVID restrictions, this was the first time in the past four years that I've been able to spend such a long time in the mainland and observe how the pandemic-hit economy was really doing. What I saw and experienced confirmed what I've been hearing consistently from my friends living in China. In Shanghai, a city that used to be proud of its cosmopolitan identity, even the downtown area is becoming less vibrant than it was a few years ago. I saw few foreign faces, and few shops, except international brands in big shopping malls, would accept Visa or Mastercard payment. Without WeChat or Alipay, I imagine travel could be very difficult for foreign tourists.

Signs of a widening wealth divide could be seen when eating out. Fast-food chains and high-end restaurants often had lines or required reservations, while mid-level restaurants had no lines at all, even during peak hours.

Many friends complained about falling housing prices, having previously purchased homes at much higher prices. Friends who own factories were even more frustrated, because their businesses are closely linked to China's real estate sector, which is experiencing a deepening crisis. The downturn has even sparked fears of a financial crisis and a potential hard landing for the economy. Due to a significant decline in domestic orders, even friends with no prior export experience are starting to desperately seek clients overseas.

Amid the gloomy outlook for property-related industries, analysts say there are a few bright spots on the consumer-spending front. That demand could be helping to fuel some