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A
SIA
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| July and August 2014
Dear Clients and Readers,
For the first time inmore than a decade, China’s manufacturing competitiveness
is wavering. Faced with increasing competition from India and emerging
Southeast Asian markets, China’s rising labor costs and complex regulatory
environment are triggering an exodus of manufacturing operations to more
investor-friendly and cost-effective jurisdictions. Most notably, India and the
10-nation ASEAN bloc, are setting the new bar for international manufacturing
standards. These developing economies are on track to reap the benefits of a
demographic dividend and inherit China’s comparative advantage in shipping
and labor costs over the next five years andwill soon assume themantle of theworld’s newest factory states.
In this issue of Asia Briefing Magazine, we explore several of the region’s most competitive and promising
manufacturing locales including India, Indonesia, Malaysia, Singapore, Thailand, andVietnam. Exploring a
wide variety of factors such as key industries, investment regulations, and labor, shipping, and operational
costs, we delineate the cost competitiveness and ease of investment in eachwhile highlighting Indonesia,
Vietnam, and India’s exceptional potential as the manufacturing leaders of the future.
The decision of where to base one’s manufacturing operations is one that should never be taken lightly by
foreign investors, and professional services firms can play an important role in helping companies weigh
the benefits and shortcomings of various jurisdictions.Withmore than 20 years of experience in the region,
Dezan Shira & Associates and its partners throughout Southeast Asia are pleased to assist businesses and
investors interested in further understanding the complex web of DTAs, FTAs, FDI regulations, and cost
considerations that shape the ebb and flow of manufacturing competitiveness across Asia.
With best wishes,
A
SIA
B
RIEFING
Issue 10
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July and August 2014
Additional resources available at
Introduction
Ramendranath Chakravorty
Watercolour on paper, 33.5 X 43.2 cm
Delhi Art Gallery
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Materials within are provided
by Dezan Shira & Associates. No
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This Month’s Cover Art
