Investment in Southeast Asia more attractive than China

Investment in Southeast Asia more attractive than China

The Southeast Asian country is not perfect, if considered individually, but together, this is a very attractive area with multi-national companies. According to analysts, the ASEAN structure diverse population, abundant labor resources, productivity is improving education – training and focused increasingly integrated with international markets.

Meanwhile, China is growing at a rate slowed to 7.5%, from an average of 13% per year from salary increases 90s with the 2-digit speed also reduces the advantage of cheap labor in the past. The cost of real estate, water and electric-business taxes are increasing dramatically.

Investment in Southeast Asia more attractive than China

Singapore is attracting investment from many companies in the United States and Europe. Photo: Bloomberg

China will remain the world’s factory and is an important market for the company. But the date also marks any goods “Made in China” has ended. As global markets become increasingly complex, it was time for manufacturers to expand global vision.

ASEAN’s population is 600 million and is still rising rapidly. 2013, capital foreign direct investment (FDI) in the 5 biggest economy for the first time beyond the area of China (128.4 billion compared with 117.6 billion).

If included as a nation, ASEAN will be the 7th largest economy in the world with GDP of USD 2,400 billion. This area is also the 4th largest exporter in the world, contributing 7% of global turnover globally. The products are diverse export. Thailand is the world leader in exporting vehicles and auto parts. Philippines outsourcing industry is highly developed, while Vietnam strongly about fashion and textiles.

Manufacturers from the United States to Europe are seeking to move production closer to the Asian consumer market growth. American pharmaceutical companies – Abbvie will invest $ 320 million to build its first factory in Asia in Singapore. Two energy giants devices – Halliburton and Schlumberger are also working with the Government of Singapore to enhance the capacity of local providers.

Made in Malaysia – the 3rd largest economy is also booming with ASEAN automotive, semiconductor, electronics and boats. Growth in this sector is expected to reach 20-30% by 2014 Hershey chocolate company is also building a $ 250 million plant in Malaysia. This is the biggest investment in their Asia so far.

However, according to Forbes, ASEAN still many challenges to be addressed, including development of human resources and labor skills. Other obstacles include political instability, natural disasters, poor infrastructure and unstable power source.

Investment in Southeast Asia more attractive than China
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