Global Energy Shock: Southeast Asia & China Effects & Countermeasures - E679

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How is the energy crisis visibly affecting traffic and daily life in Vietnam?

Valerie Vu 0:00
If you are here in Vietnam right now, you will see the amount of vehicle and traffic has reduced a lot because the oil and gas prices have been increased. Some day it has spiked to like fifty percent. So one of the highest price increase in the Southeast Asia region. Right now it's about thirty percent higher than before the IRN conflict.
Jianggan Li 0:21
A friend of mine r who is a historian based in Beijing and he ran a simulation with a few AI tools. He po appointed like three AI tools to be negotiators for Israel, US and Iran. You can see that at least from a simulation point of view, the US was much more pressurized to end this war whilst I think Syria wanted to accelerate this and while Iran is taking a long term view. It's already very painful and uh just like what people said about China last year, right? They can toller and much better than the US.
Jeremy Au 0:47
What is the impact of short versus long, right? Obviously if it's short, then everything goes back, everybody's happy. But in a longer term scenario, what does a longer term scenario look like? And what are the some of the second and third other impacts? Welcome to Brave. Learn from Southeast Asia's best tech leaders. Build the future, learn from our past, and stay human in between. No BS on success. I'm Jeremy Al, Venture Capitalist, Sarah founder, Harvard MBA, science fiction nerd, and dad of two daughters. Every week, we debate startup news, interview change makers, answer listener questions, and share personal insights. Join our movement of over 40,000 members and get transcripts, resources, and community at www.bravesdea.com.
Jeremy Au 1:38
Um Stay well and stay brave. Hey Dimon. Hey Valerie. So excited to have you. This is actually our first ever three-person podcast on Brave. So this is exciting. And we thought that this was an excellent time for us to talk because there are so many listener questions about the impact of the current energy crisis and its impact on Southeast Asia and outlook. So you're an expert on China and Southeast Asia. And Valerie, you're an expert on Vietnam and Southeast Asia. So I think this is a fantastic opportunity. opportunity to discuss. So I think first of all, you know, obviously we know the facts, you know, people can Google themselves about what the energy crisis is. But I'm just kind of curious, like what is the energy crisis being portrayed in your own countries, right?
Jeremy Au 2:23
In China, Vietnam. How is it being reported in the news in terms of the dynamics?
Valerie Vu 2:26
Sure, I can just describe quickly what is happening on the street in Vietnam right now. Honestly, you can see the amount of cars and bike. on the street right now has reduced by at least thirty to forty percent because the oil and gas prices have been increased like by someday it has spiked to like fifty percent. So one of the highest price increase in the region, in the Southeast Asia region. Right now it's about 30% higher than before the IRN conflict, but it's still like very substantial price hike, which you know take a toll on regular daily life of all of us Vietnamese. So yeah, the government and some of the big companies even say like they encourage like working from home to the employees. So if you are here in Vietnam right now, you will see the amount of vehicle and traffic has reduced a lot.
Valerie Vu 3:19
So that's the actual like reality in the day to day in Vietnam right now.
Jianggan Li 3:24
I actually just came back to Singapore from Shanghai like two days ago. I'm going there again on Friday. So I've been observing about how people have been talking about this, how people have been observing about that. I see there's a more enthusiasm about how can Iran like go up against the US, that kind of narrative being spread across especially the social media space. In the public media, of course, they are all controlled by the government.

What does the 30‑50% fuel price spike mean for consumers and businesses across Southeast Asia?

Jianggan Li 3:48
So the narrative is I think first so There will be a shock. And the second, I think oil supply is very diversified nowadays. We see the effort of of the Chinese government trying to diversify the oil supply over the last two or three decades. And a third, there are plans for external shocks.

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