ASEAN to become ´world´s factory´ in a decade

ASEAN to become ´world´s factory´ in a decade

Rising labour costs, among other reasons, have driven Chinese manufacturers to set up operations in Southeast Asian countries. A study by ANZ Bank economists suggest that Southeast Asia would take over from China to become the ´world´s factory´ in the next 10-15 years, citing its youthful workforce and strategic location as catalysts for this shift.

Rising labour costs, among other reasons, have driven Chinese manufacturers to set up operations in Southeast Asian countries. A study by ANZ Bank economists suggest that Southeast Asia would take over from China to become the ´world´s factory´ in the next 10-15 years, citing its youthful workforce and strategic location as catalysts for this shift.

The Asean Economic Community, which is likely to come to fruition by end of the year, would see the emergence of a single market with free movement of goods, services, investments and skilled labour. The economic zone, the report said, would connect the low-cost labour in Myanmar, Cambodia and Laos, cost-effective businesses in Thailand, Vietnam, Indonesia and the Philippines, and sophisticated manufacturers in Singapore and Malaysia. According to the Secretary General of the China Chamber of Commerce for Import and Export of Textile and Apparel lower production costs, reduction of tariffs and competitive cotton prices contributed to the success of Chinese companies in shifting their production to overseas bases. Manufacturers in both China and Asean countries are complementing each other in the production chain, rather than competing with each other.

Philippines´ inclusion in the European Union´s GSP+ allows the country to export over 6,000 items to European Union member countries at zero tariffs, including apparels and footwear, which previously came with a 5-9 per cent and 11.9 per cent tariff.

As the level of development varies from one country to another in Southeast Asia, some boast lower production costs as their competitive advantage while Malaysia prides itself on high-value manufacturing. Malaysian Investment Development Authority says Chinese manufacturers should not write off Malaysia simply because labour costs are high.

According to the China-Asean Business Association textile manufacturers in Southeast Asia also look forward to working hand-in-hand with Chinese partners through joint ventures to raise the standard of the industry, in terms of technology, design and equipment. Such partnerships pave the way for establishments of regional brands, and the Chinese industry players plan to visit Southeast Asian countries in currently to explore opportunities to cooperate with local manufacturers.

CATEGORIES
TAGS
Share This

COMMENTS

Wordpress (29)
  • comment-avatar

    best generic allegra best generic allergy pills generic name for allergy pills

  • comment-avatar

    order deltasone 10mg sale prednisone 40mg oral

  • comment-avatar

    over the counter stomach relief famotidine 20mg uk

  • comment-avatar

    how to get rid of spots on face buy deltasone 5mg for sale antibiotics for pimple pills

  • comment-avatar

    major brand allergy pills albuterol inhalator cost types of allergy pills

  • comment-avatar

    best prescription medication for reflux glycomet 1000mg brand

  • comment-avatar

    buy generic accutane online isotretinoin 20mg ca buy generic accutane

  • comment-avatar

    buy sleep medications online order modafinil 100mg online cheap

  • comment-avatar

    buy amoxil cheap buy amoxil sale order amoxil for sale

  • comment-avatar

    buy cheap azithromycin azipro where to buy brand azithromycin 250mg

  • comment-avatar

    buy furosemide 100mg for sale buy furosemide 100mg pill

  • comment-avatar

    prednisolone 40mg canada omnacortil 5mg for sale prednisolone buy online

  • comment-avatar

    buy amoxil 250mg pills amoxil 1000mg oral amoxil tablets

  • comment-avatar
  • comment-avatar

    buy albuterol 4mg generic purchase albuterol pills order albuterol pill

  • comment-avatar
  • comment-avatar

    brand synthroid 100mcg cheap levothroid pill buy synthroid online

  • comment-avatar

    vardenafil 20mg tablet levitra 20mg for sale

  • comment-avatar

    clomid pill buy clomiphene 50mg pills cost clomid

  • comment-avatar

    accutane pills accutane 40mg us buy generic isotretinoin 10mg

  • comment-avatar

    amoxil tablets amoxil 500mg pill buy amoxicillin 250mg without prescription

  • comment-avatar

    omnacortil online buy omnacortil 10mg online omnacortil 5mg tablet

  • comment-avatar

    cheap gabapentin 600mg order gabapentin 100mg pill cheap neurontin 100mg

  • comment-avatar

    legal online blackjack play blackjack online blackjack online free

  • comment-avatar

    cialis- canadian pharmacy Pharmacy canadianphrmacy23.com
    canada pharmacies online viagra [url=http://canadianphrmacy23.com/]Walmart Pharmacy Prices[/url]

  • comment-avatar

    generic rosuvastatin 20mg zetia 10mg tablet purchase zetia pill

  • comment-avatar

    canadian pharmacy cialis generic no prescription pharmacy
    ed canadian pharmacy [url=http://canadianphrmacy23.com/]had me going[/url]

  • comment-avatar

    buy motilium 10mg sale motilium canada order tetracycline 250mg generic

  • comment-avatar

    prilosec sale buy omeprazole 10mg generic prilosec 10mg drug

  • Disqus ( )