Skip to comments.The 10 Countries That Are Trying To Be The Next China (Something for investors to consider...)
Posted on 09/20/2011 8:01:53 AM PDT by SeekAndFind
"Sourcing goods in China purely because of ultra-low costs is a thing of the past, said KPMG's Nick Debnam.
In a new report title Product Sourcing In Asia Pacific, KPMG notes China's disadvantages include rising labor costs and an aging workforce. Of the 11 countries discussed, China has the oldest population with a median age of 34.
More companies are turning to Indonesia and Vietnam for footwear manufacturing. India's specializations in hand stitched fabrics and metalware have made it a major alternative to China. Cambodia and Bangladesh are experiencing a booming export industry thanks to favorable trade agreements with the European Union.
KPMG profiled the major competitors.
CLICK ABOVE LINK FOR THE LIST
(Excerpt) Read more at businessinsider.com ...
My favorite countries for overseas business on this list are Thailand and the Philippines. They both have the rare combination of decent infrastructure and reasonably decent, honest and pleasant people.
The next two would be Malaysia and Indonesia. Businesses operate reasonably well because they are mainly run by ethnic Chinese. But watch out for delays even if you think you are familiar with the Muslim holiday calendar-- you may run into holidays you didn't even know existed! Some companies may tell you that they work during Ramadan, for example, but actually getting anything done is an entirely different story.
The problem only gets worse if you do business in Muslim countries when the businesses are run by Muslims. Bangladeshis are generally sweet, gentle people and the closest thing in the world to those elusive moderate Muslims which everybody talks about but few seem to find. Many of their businesses have Indian management and are actually well-run but the infrastructure, while improving, is the worst on the India subcontinent.
India is so big and so diverse it is hard to make generalizations. In general, though, you will find those in the south and east to be gentle and pleasant at the expense of business efficiency. Those in the north and west have good business efficiency but make the Dutch and Swiss look generous by comparison. There is an old joke that copper wire was invented when two people from this region spotted and picked up a copper coin at the same time.
RE: Thailand, Philippines, Malaysia, Indonesia
I agree that these countries have budding infrastructure and educated workforce ( at least for a Christian country like the Philippines, I see it all over the place ). Also, in the Philippines and Malaysia, English is very widely spoken.
However one question comes to mind -— How do you find CORRUPTION ( e.g. UNDER THE TABLE DEALS ) in these countries and palm greasing? I found them to be quite rampant.
Compared to what?
If you compare to a first world Asian country like Japan, they are indeed rampant.
If you compare to just about any Middle Eastern country except Israel, it is like comparing your average petty thief to Bernie Madoff or Barack Obama.
A little sarcasm there.
"All your stuff are belong to us."
The reality is Red China done stole all your intellectual property, technical and management know-how.
They got high-tech factories your FDI paid for.
The Chi-Coms can sell far cheaper -- they got 800 million desperate citizens to exploit -- and baring revolution (always a strong possibility) they will be killer competition.. maybe even literally if they deem it necessary.
The length of China’s expressways is expected to exceed the total length of the Interstate Highway System (in the USA) this year.
Many people talk about alternatives to China, but the amount of investment in infrastructure and the related productivity gains are simply mind boggling. Neither India, nor the Philippines nor Indonesia can compete against a superb supply chain and world class infrastructure.
If labour costs were the only consideration, manufacturers would trooping to Africa to set up shop.
Secondly, you need to understand that there are many Chinas. The eastern seaboard (Tianjin, Shanghai, Guangdong, Shenzhen etc) have labour shortages, but the interior (Chongqing, Chengdu etc) are gearing for take-off. The Chinese government have invested heavily in infrastructure and training to develop the West and the interior regions.
Examples are the reactivation of the Stilwell road to link Kunming to Burma (and cut off the straits of Malacca), construction of a cargo airport and direct railway links between Chongqing and Europe and construction of a massive inland port at Chongqing.
[The 10 Countries That Are Trying To Be The Next China]
You are saying, essentially, that the :) ChiComs :) — not the AmeriComs :) — are now setting the world’s standards? You can’t be serious! There has to be a mistake somewhere... Slick Willy again and ChiCom espionage no mistakes about it...