Asean winning Japan investments as China costs rise

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More Japanese companies are choosing the Asean region over China as an investment destination as rising costs and concerns about the environment make Asia’s biggest economy less attractive, according to the Japan External Trade Organization.

Seventy five percent of the 3,471 Japanese companies surveyed said they’re considering an expansion in the Asean nations of Singapore, Thailand, Malaysia, Indonesia, the Philippines and Vietnam, the organization known as Jetro said yesterday in a report. That’s up from 56 percent in 2011. The number of firms looking at China dropped to 57 percent last year from 68 percent two years ago, according to Jetro.

“We’ve seen a shift in the last two years and it looks to continue with more investments turning to Asean and also moving from China to Asean,” Akira Kajita, a director at Jetro’s overseas research department, said at a briefing in Tokyo yesterday.

The shift coincides with the push by Japanese Prime Minister Shinzo Abe to build stronger ties with Southeast Asian nations as a buffer against China’s growing military and economic reach. Tensions between China and Japan have peaked since 2012 as both nations assert claims to an island chain in the East China Sea.

While Japanese auto and chemical manufacturers still plan business expansions into China, firms with Chinese trading, textile and metal processing assets look to transfer these to Vietnam and other Southeast Asian nations, Jetro said.

Half of the respondents to the December survey said rising costs in China were the main reason for shrinking capacity there, with currency risks and environmental pollution among the other key factors, Jetro said.

 

 

 

 

 

Source : Thahn Nien Daily | March 1, 2014

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About thomasdinnocenzi

Thomas D'Innocenzi is a highly accomplished, results-focused senior international executive with extensive experience in global sourcing and market development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global sourcing operations worldwide. Extensive experience in international market development operations to accommodate rapid growth. Skilled in building top-performing teams, benchmarking performance, and restricting organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. As principal of Nova Advisors, LLC I’ve assembled an exemplary team that brings with them the knowledge and experience gained from starting up a Global Sourcing program with multiple Fortune 500 companies as well as the largest supplier network throughout the Asia-Pacific region. We have experience and expertise in more than a thousand medical and pharmaceutical products in manufacturing and sourcing at the best value. The right product, the right price point and the right branding fueled these successes that resulted in double-digit growth for top line sales and bottom line net margins for our customers. What sets us apart: • Our reach includes a large network of suppliers & manufacturers spanning 13 countries in Asia-Pacific region • We understand the manufacturing process and the business of the supplier and the buyer • Our company culture is based on quality assurance and our process is based on local quality control Our commitment is to be your partner offering the best products and services at the lowest cost. Contact me to discuss how we can make the global marketplace work for you. thomas@novaadvisors.com In addition, I am open to discussing opportunities in global sourcing, international marketing & sales, logistics and medical/pharma in Thailand, Vietnam, Malaysia, Philippines & Japan. Aside from my work I enjoy piano, astronomy, physics, and assisting my daughters with their studies. SPECIALTIES: Global Sourcing, Supply Chain Management, Business Development, Marketing, Logistics, Global Networking, Market Development, Healthcare Solutions, Pharmaceuticals, Medical Devices, Technology, Asia, Southeast Asia, US and Canada
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