Commentary: Manufacturing flocks to new corners of Asia, but must first overcome China's pull

25 August 2017

Asian economies trying to improve their economic growth through manufacturing need to first outcompete China. Countries such as India, Vietnam and Cambodia are rising from being some of the poorest economies in the world to becoming middle-income economies through manufacturing. As these manufacturing centres grow, they begin to develop their consumer goods markets and offer opportunities for investors. However, is it possible for other Asian economies to grow through manufacturing? Many poor countries struggle to develop their manufacturing sector as developed Asian countries’ automation and robotics compete with cheap labour manufacturing. Manufacturing and manufacturing jobs in average developing countries are falling due to the high concentration of manufacturing in China. This concentration means that if other Asian economies want to grow their manufacturing they must offer better opportunities than China. However, this will be difficult to achieve until China transitions to a consumer economy and opens up opportunities for other countries to grow their manufacturing.

Read the full article here on the Channel News Asia website.

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