The Reality Of Chinese Factories Moving To Southeast Asia

< p > first, let's take a look at an article in < a href= "//www.sjfzxm.com/news/index_p.asp" > < < /a > > in New York. There are indeed some things that may lead people to believe that China's large-scale factory flight is happening: < /p >

The reasons why foreign companies flock to Southeast Asia are very simple. They want to reduce their excessive reliance on Chinese factories; < /p > p

< p > two, "every few days, I will receive a call from manufacturers to move their enterprises from China."

An American lawyer who lives in Phnom Penh, capital of Kampuchea, said.

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< p > but the article also points out that only certain types of companies will leave China completely and the vast majority will remain.

The departure is mainly concentrated in industries with low technological content, such as clothing and shoes.

Many companies set up new factories in Southeast Asia as a supplement to China's business.

China's rapidly growing domestic market, huge population and solid industrial foundation are still great advantages.

At the same time, the rise in productivity of Chinese workers is almost as fast as that of wages.

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< p > although foreign investment in Southeast Asian countries is rising, it is not always easy to do business in Vietnam, Thailand, Burma and Philippines, because only in China can there be a complete industrial chain, such as the manufacture of handbags and bags, if the production business is moved from China to Southeast Asia, the related fabrics, buttons and other required materials must be imported from China and assembled locally.

As a result, the cost of factory relocation is virtually negligible.

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< p > < strong > the true situation of Chinese factories moving to Southeast Asia < /strong > /p >

< p > however, some factories have been relocated, and the trend of industrial pfer to Southeast Asian countries is indeed emerging, because Western buyers are worried that they will depend entirely on a country to bring risks.

Specifically, the real situation can be summed up as follows: < /p >

P, 1. Chinese manufacturers are diversifying and balancing in Asia to share risks and improve efficiency.

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< p > two, China has also upgraded itself in terms of technology and automation, gaining other advantages besides scale, supply chain depth and market demand.

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< p > three, small < a href= "//www.sjfzxm.com/news/index_c.asp" > clothing < /a > and shoemaking enterprises. They seriously studied the establishment of bases in Vietnam or Kampuchea, but in the end they often gave up, because the supply chain in those places was too difficult.

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< p > four, medium and large clothing and shoemaking enterprises have extended their tentacles to Vietnam or Kampuchea, setting up small factories in these countries, or doing some outsourcing.

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< p > five, many companies began sending people to Vietnam, Kampuchea, Burma and other places.

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< p > six, many companies hope to expand their factories or offices in Thailand, Malaysia and Indonesia, believing that these three countries are booming.

The importance of ASEAN's economy will continue to rise in the next ten years.

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< p > < strong > new trend of economic development in Southeast Asian countries < /strong > < /p >

< p > and the economic conditions of Southeast Asian countries are also undergoing rapid changes, specifically: < /p >

Foreign direct investment in Southeast Asia will grow faster than China, and ASEAN's infrastructure construction and workers' professional knowledge will significantly improve. P

Productivity in Thailand and Malaysia will continue to surpass China because they have adopted advanced technologies such as mechanization.

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< p > two, in Southeast Asia, competitive electronics companies will set up factories in Thailand and Malaysia, where there is a higher productivity and a growing middle class.

Vietnam, Philippines and Indonesia may be next important.

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< p > three, as the second hub of ASEAN, Bangkok will challenge Singapore as a marketing and sales center.

This is due to its geographical location, as well as its rapidly growing market and middle class.

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< p > four, Singapore will retain its position as a financial centre, but the importance of its manufacturing industry will rapidly weaken as it faces natural constraints on land and labor.

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< p > five, Bangkok's economy is taking off. If it can handle the problems of political and Muslim extremists, there is no doubt that it will continue to flourish.

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< p > six, ASEAN countries (Brunei, Kampuchea, Indonesia, Laos, Malaysia, Burma, Philippines, Singapore, Thailand and Vietnam) will become common market in 2015, and many multinational companies are taking advantage of this opportunity.

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< p > seven, Singapore will be the best choice for rich multinational companies to set up an ASEAN headquarters, but I see many small companies have chosen Bangkok because it is so cheap.

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